3-D World Marketview : US, Europe, & China

Irrefutably, global markets have declined more or less concurrently and put paid to the view of decoupling that was so prevalent even as the credit crisis intensified. In difficult times, we see capital markets as requiring organic change internally and in global structures. It demands long-lived focus on quality of execution from companies, central banks and government structures alike.

We stress that flexibility generally, corporate focus on the long term and the evolution of the strongest financials appear crucial. In market view, we see the world as regionally three-dimensioned with the United States (in a more infrastructure / lesser consumer cycle), China ( in a more domestic/lesser export dependence) and finally Europe, a likely weak link in this cycle. In not recognizing modern Switzerland as its viable model but instead by focusing on regulation and ossified global positioning, Europe risks becoming a glorified 18th century Venice.
 
Significant compromises are required on increased regulation (favored by Europe), large scale stimulus (already implemented in the U.S. and elsewhere) and increase in formal financial influence (long demanded by Asia with the largest reserves globally).

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