New Year Resolutions

Loosing faith

The early effects of a new year have had a positive effect on equity and capital markets since the onset of the 2008 Financial Crisis. There is a common shared feeling of robustness and onset of a new growth regime which is displayed in the S&P 500 index in the first quarter of every post-crisis year, with 2012 being no different.

This late winter growth comes to a faltering end following the onset of spring. A sudden realisation perhaps the economic climate has changed only to remain the same! The real economy for advanced economies is currently witnessing a tepid recovery. Policymakers and the media realise what the Great Recession lacked in depth it is making up in width; in comparison to the strong cyclical recovery following the Great Depression.