The key points are as follows:
Shares have hit a rough patch since recent highs with concerns about the growth outlook.
We remain upbeat on a 12-month view as falling inflation allows rate cuts and hopefully recession is avoided or is mild. But the risk of a further correction in shares is high.
Seven key charts worth watching are: inflation; inflation expectations; global business conditions PMIs; unemployment and underemployment; earnings revisions; the gap between earnings yields and bond yields; and changes in the $US.