Well, although the equity market is yet to wake up to it, the data points suggesting that the peak in this little global growth rebound is already behind us are starting to add up. The latest is today’s China PMI which has sorely disappointed by reversing 1.9% to be barely in the positive in February at 50.4.
The internals weren’t so hot either with slowing in all of the leading components especially export new orders, which was the same in the US PMI:
The fleeting Christmas inventory bounce thesis is looking strong.
More bad news, but no need to worry.
Consensus is that equities have disconnected from economic reality. So let the equities party. May it continue until every home in the world can install a fireplace and heat their homes with worthless freshly printed US$, GBP, Euro and Yen for less than the cost of buying gas or electricity.