Just over a decade ago, global markets began to recover from the biggest shock in postwar history. In these 10 charts, we aim to show how much has changed since then and how market conditions over the past decade may influence big changes that are beginning to unfold today.
Even as financial markets have rallied in early 2019, uncertainty is still in the air today. Macroeconomic growth, corporate debt, central bank policy and geopolitical risks are all adding to the anxiety. The roots of today’s market conditions can be traced back to the global financial crisis (GFC), the subsequent recovery that began in March 2009 and surprising developments around the world since then. For investors to overcome market challenges and position themselves in today’s complex environment, they should start by taking a closer look at some of the massive changes that have reshaped the financial world we live in today.
After the GFC, extremely accommodative monetary policy lowered market volatility, culminating in an exceptionally calm year in 2017. In 2018, volatility returned to global equity markets and is widely expected to continue this year. Turbulent markets can be unsettling for investors, but also provide more opportunities for active managers to generate returns.