April 9, 2019 Gloom for the Globe; Bright Spot for Bonds by Lester Murray

The soothsayers at the International Monetary Fund have been spreading their own brand of gloom again. Its just released forecast portends even slower global growth than was previously projected. The IMF cut its worldwide output expectation from 3.5% down to 3.3%. This is the third time in the last six months that this forecast has been downgraded and one would have to go back to the dark days of 2009 to find a lower forecast. Ouch! As one might expect, equity markets around the world have sold off on such news while new life has been breathed into bond prices. America's Ten-Year is once again yielding less than 2.50% as all coupons along the curve have rallied. For the U.S., the IMF report cut its forecast to 2.3% GDP growth in 2019 from 2.5%.