Economic expectations

Last year marked a turning point in the global economy. The two major trends that had dominated the markets over the last few years were reversed. Inflation started to rise again, reaching its highest levels for over a decade in the US and UK. And the global interest rate cycle turned decisively, with central banks raising rates in the US and EU. That signalled an end to the era of easy money introduced in response to the dotcom bust. Not that this seemed to worry investors. Bond markets shrugg...