I have a high regard for the views of the bond market and its investors and I'm inclined to listen to the message it is sending. Over $15 trillion of debt now has a negative yield and the German yield curve is negative from one month to 30 years' maturity, this tells me all is not well. Furthermore, the rally in the gold price is not to be ignored.
Company results suggest that life is getting tougher even for high quality businesses. My concern is that companies facing growth challenges have expensive valuations, so some quality shares are vulnerable to a worsening macroeconomic environment. Things aren't helped by fears about the fallout from a new currency war.
