The recent rally in share prices have driven investors to think whether this is a sign of the global economy recovering. However, it is clearly shown that a number of indicators point towards global trade continuing to decelerate and that the real sector of the economy really hasn’t been improving. Indicators from the real sector of the global economy are still not rising despite the upturn of share prices.
This suggests that the rebound in equities was really not supported by the improvements in global business cycle conditions. Hence, this casts doubt onto the sustainability of the market turnaround, probably only fueled by swings in investor sentiments.