fusion). As Salmon visited Davos, where the world´s elite and their groupies met last week, he got the impression, "that fear is very much on the ascendant", which would endanger global growth and prosperity.
I disagree. I believe that the rising fear, if it really exists, will be self-destroying. When the German´s automobile club ADAC warns that some Autobahn segments will be jammed at next Weekend, car drivers usually respond and will avoid to drive there at this time. And the jam won`t happen.
As indication for the growing fear, Salmon refers to the extremely low and falling interest rates of of five-year German bonds. But, low interest rates are good for the economy because borrowers can make more profits - and dividend paying stocks will be more attractive. Therefore German´s economy - and their neighbours` - will benefit from cheap money.
According to the pessimistic Salmon "the overwhelming consensus is that asset prices" - like stock prices - "are much more likely to go down substantially from here than they are to go up substantially". But the "overwhelming consensus" is already priced in, meaning that stocks are cheaper then they should be.
It also means that the majority badly missed the rally on the stock markets and has to come back because the expected casualties for global growth and prosperity won`t happen. I believe that pessimism - and fear mongering a la Salmon - has been accompanying economic growth and stock market rally since 2009 and has been creating investing chances all the time.