It ´s like watching someone try to kick start a car and then it stalls. Then, they try again. Every time it seems like the car cuts off, its a “risk off” day. Every time the car starts and stays running, its a “risk on” day. The debate about what governments should is nicely stated by the Institute of New Economic Thinking ” Cut now to inspire private growth or keep public investment to avoid stagnation?” Last weeks wall of worry was a worrying turnround in US factory activity which sparked a wave of selling at the end of the week, pushed further by a surprising move to downgrade the eurozone’s growth outlook. Interestingly, this is just after Germany´s star GDP numbers. Then, there is US jobs. Nobody knows if the new world economic order means the Americans don´t have to do all the consuming any more. We tell clients to keep focused on the big picture. The daily whip saw is tiring but the global economy muddles on. I found it telling that the mergers and acq. activity this week put the Materials sector front and center.