As a result of this, global financial markets may well be in for further bumpy rides, not least because market risk indicators such as high-yield corporate bond spreads, the spread on foreign currency emerging market debt, and general equity market volatility – which often reflect investor nervousness – remain low, pointing to a possible dislocation that could understate the downside risk profile to economic growth.
Nevertheless, as is the norm, markets have moved ahead of ‘the fact’, for 1  Marvin Barth, The Politics of Rage, 2016, Barclays, United Kingdom. Page 2 of 9  instance pricing in a higher trajectory for US2 economic growth.