If there were any doubt only a few days ago, there should be none at all now - that even incrementally more restrictive monetary policy by the Federal Reserve is a danger in a very slow growth world.
Eurozone equities have had a volatile summer but the region’s economy continues to recover and improvements in corporate earnings should drive further share price advances.
China’s equity market boom and bust should have a limited immediate macroeconomic impact, but we fear the seeds of a future crisis have been sown.
China’s central bank has taken steps to devalue the renminbi. The initial direct impact on eurozone equities is fairly limited but certain sectors and companies have more pronounced exposure.
According to the Schroders Economics team's latest analysis, investors looking for positive real returns over the next seven years should look to equity, credit and alternatives.
Despite the prospect of an impending Federal Reserve rate hike, we believe the long-term case for investing in Asian dividend stocks remains strong.
Economic and Strategy Viewpoint
In this month's Viewpoint Schroders team of economists take a look at the issues affecting the performance of the global economy including Iberian political risks, China's equity boom and bust, and the threat posed by dollar strength.