GLOBAL STOCKS FOLLOW GLOBAL MANUFACTURING - CYCLICAL PEAKING PMI FORECAST TO WEAKEN
The Global PMI appears to be peaking within its current later stages of its expansionary cycle. The PMI is additionally now showing indications of weakening which has prompted analysts to begin taking down their forecasts. This is to be expected in the final stages of the economic expansion.
The Global MSCI Equity World Index has tracked the Global Manufacturing PMI closely for two decades. This suggests we should see downward pressures on global equities going forward.
The current market turmoil, spike in volatility and change in the pricing of risk are suggesting the markets are beginning to build this in. Markets normally look out 6 - 8 months.