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Jakobsen: The global stress test and why the markets are failing it

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"The world is an uncertain place", the words of Stanley Fischer, Vice Chair of the Federal Reserve's board of governors speaking last night at the Council of Foreign Relations in New York. Mr Fischer was anticipating a question about what the Fed would do next, and he was keen to indicate that the Fed would make its decisions dependent on the data. He also added that a "persistent tightening of financial conditions" could slow down global growth, hit output and inflation in the US.    

So, Saxo Bank's Chief Economist Steen Jakobsen gives us his analysis of the data that's catching his eye, notably the Cleveland Financial Stress Index; designed to warn regulators and policy makers of incoming stress and which is at a level which should have them sitting up. 

Steen explains why he's predicting lower market levels for most of this year and how he's protecting his portfolio in a stressed and depressed trading landscape.