Week InReview: January 26, 2018

Optimism & Caution

• At the World Economic Forum's annual meeting in Davos this week, the International Monetary Fund argued that while the outlook for this year and the next was better than previously anticipated, a recession may be closer than many acknowledge and that investors and policy makers should guard against complacency.

• "The bull market seems to be steamrollering over everyone who has a bearish view," said Tim Adams, president of the Institute of International Finance, who was in Davos. "But there's a lot of complacency. There are termites in the foundation and a number of those are gnawing away at night."

• Signaling other causes for concern a new report released on Monday by the United Nations showed global flows of foreign investment fell 16 percent in 2017 to $1.52 trillion, while the International Labor Organization said progress in reducing vulnerable jobs had stalled.

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