Goldman: Where The Global Economy And World Markets Stand Right Now

Goldman's latest Global Opportunity Asset Locator report gives a nice summary of the global state of play from the perspective of its analysts.

The basic gist: Growth prospects have clearly weakened, but thanks to fears of specific crises, markets have overshot to the downside. Thus, risky assets are now cheap, safe-havens are expensive.

Growth will ultimately resume, and the policy outlook is now tilted towards loosening, with a greater than 50% chance the Fed embarks on a new round of QE.

Charts like this showing the gap between dividend yields and inflation-adjusted government bond yields to be near record wide levels, evidence of an abnormally high equity risk premium.

Further underlining the firm's point about the cheapness of risk assets:

 Here's the big-picture outlook from Goldman:

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Original content Bob DeMarco, All American Investor