The Three Bears are returning home: End of 'Goldilocks' environment

For some time, the equity market has benefitted from what has been termed a 'Goldilocks' environment.

The global economy has generally been running not 'too hot' as to cause a rapid rise in inflationary expectations, and not 'too cold' to raise concerns of a recession.  The temperature has been just right: low unemployment, low inflation and low interest rates, accompanied by rising economic growth, have boosted stock prices and subdued volatility.  However, there are signs that the Three Bears are returning home, each with a gripe that risks a rude awakening for European investors. Firstly, there is concern on whether equities can continue to perform in a rising interest rate envi...