Is a double dip recession a real risk?

The First Quarter witnessed a near term peak in virtually all risk assets as markets proceeded from recovery to panic by the end of April. Treasuries and Gold surged as investors fled risk assets on fears of a global sovereign debt contagion globally. This was a rather abrupt reversal to what had appeared to finally look like a recovery in global economies and asset markets. While sovereign concerns in Europe remain a real risk, our view had been that a significant correction was looming for asset prices. It appears on the surface this correction is in the process of having been fulfilled with the S&P 500 declining -13.4% from its high on April 23rd to its low on June 7th.

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