[Source: ANZ ]

Why then are we worried about the global economic cycle?

Clearly there are large and unpredictable forces at play here, including the uncertain geo-political environment in the Middle East and Asia. China’s stance on Taiwan, and the rogue potential of North Korea, could upset the apple cart in quick order – as could exogenous shocks from terrorism.

But the world has displayed an incredible ability to react to these types of shocks in recent years, and its highly likely that flash points in any of these areas will be weathered as well.

What we really need to unde...