Proper perspective on emerging risks

Boston

YOU can hear the bearishness in everyone's voices. They don't trust a cycle this old. They won't fight the US Federal Reserve. They fear a market swoon in a world of unstable politics.

Risks are mounting, as indicated by recent data signalling slight economic contractions in Germany and Japan. But for now, monetary, fiscal and political headwinds hardly seem strong enough to induce a global recession.

If the biggest market worry centres on th…