The Global Economy Is Rebounding, But There’s One Big Problem
- Emerging markets, led by China, have propelled world growth
- Lack of EM safe-haven assets is a problem, says Stephen Jen
Clouds are seen around the Shanghai World Financial Center in Shanghai on April 6, 2016.
Photographer: JOHANNES EISELE/AFP/Getty ImagesThis article is for subscribers only.
There’s a dark cloud building behind the world’s best period of synchronous growth among developed and emerging economies this decade -- one that in time could rain down volatility in global markets.
The problem, identified by strategist and hedge fund manager Stephen Jen, is a deepening imbalance in the lack of new safe-haven assets as the world’s output expands.