The central banks are becoming the phantom menace for the global growth recovery. The Mexican standoff between central banks on easing bias, results in lower rates and no real relative change in currency. The US Fed leads the world down the stimulus path and is unable to lead the interest rate normalisation path to reset the balance. The longer the US Fed keeps low interest rates, the higher the risk of global deflation building. Similar to 2015, the profit taking risk in August is rising as we move past US reporting season and towards local reporting season on stretched multiples and rate cut outlook. (VIEW LINK)


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