Markets rose on Friday.
The S&P 500 jumped 1.6 percent, the STOXX Europe 600 surged 2.6 percent, the Nikkei 225 rose 0.5 percent and the Shanghai Composite Index gained 0.2 percent.
While US and European markets were among the biggest gainers on Friday, some think that these economies are actually at risk of recession. From the WSJ:
Prem Watsa, one of Canada’s most prominent investors, sees significant risk that North American and European economies may slip back into recession, as governments run out of ammunition to spur growth...
He has grown so concerned about signs of distress in commodities, housing and high-yield and emerging bond markets that he fears “much pain” is coming to the financial markets...
In a 20-page annual letter to Fairfax’s shareholders, released on Friday, Mr. Watsa said he was motivated to warn about market instability after he learned that a friend’s 90-year-old mother had been advised to invest 85% of her investment portfolio in stocks.
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