Forbes: Weak Asia Data has Hedge Fund Investors Preparing For More Global Stress

(Forbes) Global economic fundamentals are not sound.

The U.S. economy is the shining star of the world’s major economies, and it needs Fed Reserve life support to grow over 2 percent.  The Federal Reserve Bank will extend its Operation Twist program, a bond buying program that forces interest rates to historic lows and weakens the value of the dollar.

The No. 2 economy in the world, China, continues to pump out disappointing economic data, with HSBC Flash PMI data yesterday showing lackluster business sentiment, now down to 2009 crisis levels.

The sky is not falling in Europe, but it’s still dark and stormy. Still, that’s better than a eurozone Apocalypse as many were forecasting to occur within three months. The euro will survive, big money managers say, and that’s ultimately good for the global economy. But as the European Union works itself out of a very deep hole, and the U.S. economy remains on at least partial life support, there will be stresses in the market. There will be volatility. There will be 20 percent dips in retirement funds.

READ MORE:

• Forbes