Governments and financial institutions have felt ire. Central banks appear reticent about even decade old policy shortcomings with the risk being markets stretching policy bifurcation on the visibility of exit strategy planning, for instance. Quickly, capital markets have gone from negligible risk premiums in failure on diversifying away systemic credit risk to credit crunch with massive risk premiums and to now risk premiums large only against unusually low government bond yields, indicating potential risk from a new variant of decoupling. Looking forward with respect to investments, the third feather of corporate quality of delivery is likely to be higher in importance. There have been significant developments but not enough for us to shift from favoring bifurcation and quality of delivery through this cycle. Uncertainties appear still present that imply volatility into quarter end. On sectors, we see financials as crucial to market performance but favor the strong with globally, massive expansion in individual new equity issuance.
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