Against the tide: Equity red lights are flashing

The tortuous negotiations between the Greek government and its creditors have occupied huge amounts of media space and used up the air miles of EU ministers. But much more important for global markets are the prospect for corporate earnings and, of course, when the Federal Reserve might act to hike US rates for the first time in nine years.

Quantitative easing has done financial markets the power of good, but less so the real economy. Since the depths of the post-Lehman despair in the fourth quarter of 2008, multiple-expansion has flattered investor returns as all the central bank liquidity seeped its way into equity and bond markets.