The words of Sir Winston Churchill in 1940 seem to capture quite aptly the current situation of the world economy in the aftermath of the financial crisis of 2008: It is not yet the beginning of the end, but rather the end of the beginning.
The adjustments in asset prices observed in the past six months provide clear evidence of market forces coming back after a long period of prominence of supportive government policies. The gradual withdraw of monetary stimulus in the US and the rebalancing of the Chinese economy have created a new environment, which is now being translated into this realignment of prices.
