The US corporate credit cycle seems to have turned with rising bad loans leading to banks tightening corporate credit conditions. This can be self-reinforcing. So I send a 'yellow card' warning to investors that we're 70 minutes into the match and we could see a recession in 2018.
In Alfred Hitchcock’s famous 1963 horror movie, The Birds, a series of unpredictable and menacing bird attacks spook an otherwise peaceful town. Since March, financial markets have been quite peaceful, but they are clearly also being swayed by unpredictably dovish and hawkish central banks.