by Patrick O’Hare
The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite have all risen to new record highs. It has been a laudable development considering the macro backdrop is still dropping a lot of disappointment on the world.
The more disappointment that is dropped on the world, though, the more it seems central banks are willing to pick things up with additional policy accommodation. That has turned out so far to be a futile attempt to ignite animal spirits in the world economy.
Zero interest rates didn’t do the trick. Quantitative easing didn’t do the trick. And negative interest rates aren’t working. Animal spirits are still missing in action, which is plain to see in GDP growth rates for the world’s leading economies.