Investors are bored of doom-mongering and are ignoring the signs of an imminent downturn in the UK and Europe, according to BNY Mellon Investment Management.
Equity markets have exceeded expectations this year, proving the doomsayers wrong and causing ‘recession fatigue’ to creep in, according to Shamik Dhar, chief economist at BNY Mellon Investment Management, who warned investors against complacency.
Fears that the global economy could enter into recession have persisted since towards the end of 2021, when central banks started raising interest rates, as investors weighed the risk – and likelihood – of policy error.
Those concerns have been particularly strong over the past 12 months as inflation has remained high and central banks have kept upping rates – at least until recently.
Dhar said: “Whilst ‘recession fatigue’ from a downturn that never seems to arrive is understandable, this fatigue is not an excuse to abandon the data and adopt an investment strategy of hope. The data continues to provide strong evidence that near-term recession risks are well above…
