I’m Mike Mackenzie and I write a daily newsletter for the Financial Times about the twists and turns in global markets AMA.
I have been a reporter and editor covering markets for the FT since 2006 in New York and London and now write the daily Market Forces newsletter. What I enjoy the most about markets is when we see big divergences in views between what prices reflect and the views of economists and policy makers.
As we begin 2019 in earnest, it’s certainly a fascinating time covering markets. There is a real tug of war playing out at the moment between equities and government bonds, which I wrote about via the Long View column on Saturday.
After a brutal 2018 for many markets, investors face a stern test of their convictions. Are equity prices now cheap enough to warrant buying? Or is the gloomy market message coming out of the government bond market on the money?
Already this year, we have seen a robust US employment report and heard from the Federal Reserve that they will take a patient approach in terms of tightening policy further. While this may help ease investor anxiety, the challenges remain formidable as we still have the unknown outcome of Sino-US trade sparring, China’s clearly slowing economy - which has knocked Japan, Europe and much of of the emerging market sector - while Brexit and Italy loom large for the Eurozone.