Overview
After years of lurching between inflation scares and recession fears, the macro environment is quietly turning a corner. Inflation is moderating, growth indicators are firming, liquidity remains supportive and geopolitical tensions are easing.
The easing cycle that began last year was largely put on hold while central bankers braced for the inflationary impact of US tariffs. But if that impact proves milder than expected, the current policy stance looks restrictive.
A powerful mix of conditions may now be ushering in the most compelling Goldilocks phase for the market in more than a decade.
Source: https://www.afr.com/markets/equity-markets/why-a-goldilocks-scenario-for-markets-may-finally-be-upon-us-20250802-p5mjts