The heady expectations that fueled the recent bull market are starting to fade. After a sharp run up in financial markets, more bearish analysts and business people are coming back to the idea that we’ve hit a new normal—one that will be fraught with financial turbulence, protectionist policies and sluggish trade for years to come.
“With the end of cheap money from the Fed, one of the major threats for global growth now stems from the rise in protectionism. Moreover, the international spillover from unconventional monetary policies could increase this risk in the future,” wrote Societe Generale’s Patrick Legland in a note published yesterday.
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