Minack: Global recession on the cards

The former head of developed market strategy at Morgan Stanley, Gerard Minack thinks we’re headed for a global recession in the next 2 years. “On a one or two-year view, I think a global recession is on the cards. And it’s not so much the thought of recession that’s scary, but that there're almost no policy tools left to respond to such an event”. “Monetary policy is exhausted, and although fiscal policy works, you’re relying on... Congress to see sense or you’re relying on Europe to get its fiscal house in order, both of which look quite unlikely.” There aren't many places left to hide, but he suggests bonds are attractive. “Bonds seem to me to be the best option, on a two or three-year view. But this is in the context of I don’t have any options for what will make people rich, I’m just looking for options that will try and make them get poorer at a slower rate.” (VIEW LINK)