It is not often that signs of economic strength trigger a market sell-off. Slightly higher than expected wage growth was perceived as presaging significant inflationary pressures, leading to a market correction. Volatility accelerated faster than during the Lehman collapse. Our inboxes were inundated with emails proclaiming various shades of “buy the dip” from banks.

A few weeks ago, a simple altercation between two men on a subway platform escalated to a complete lockdown of London’s busiest shopping district. This incident was a perfect example of how the behaviour of a misinformed crowd can lead to astounding outcomes.

The global economy is experiencing a highly-synchronised acceleration of growth.  The expansion is broad based, covering all major economies and regions. Despite the absence of inflationary pressures, the strength of US data has helped affirm the Fed’s monetary tightening trajectory. In Europe, it enabled the ECB to moderate its quantitative easing measures.