The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Against the tide: Moving into the end game

by David Roche

It's an irony that better economic performance heralds thinner pickings in the financial markets. And faster global growth lies ahead. That's why it's time investors reduced their equity holdings, got out of most bonds and built up cash.

There is a growth shock out there for all the OECD economies. I expect real GDP to grow at 3.4% next year. What's more, inflation will be over 3% in the OECD by mid-1997, compared with just over 2% this year.

This growth shock is the result of extraordinary monetary easing and the amazing purchasing power created not only for corporations through their increasing profit share but also for households. Money supply is growing much faster than GDP in the OECD and it also costs less than the average of the last 10 years in both nominal and real terms. And international liquidity is booming, too.

Labour income has soared in most places, despite rising unemployment in Europe and Japan. Most people have kept their jobs and got paid more in real terms, while in the US
8 million new jobs have been created in the last three years. Households have also got richer through their investments.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree