Double-dip recession or modest recovery?

After a sharp recovery in early 2009, global sharemarkets have trended sideways for nearly a year and investors seem to be increasingly concerned about global economic prospects. Matthew Sherwood, Perpetual's Head of Investment Market Research examines the global picture and concludes that although the risk of a double dip recession has increased, it remains quite low. However, the earnings outlook from here appears to be more anaemic than current expectations and investors should be wary of being overly optimistic.