As economic growth remains robust, driven by sectors like defense, AI, and obesity drug manufacturing, Saxo’s strategy team warns of the fragility of this “sandcastle economy” in their quarterly outlook for Q3.
Although their perspective for the short term is neutral, this outlook explores the underlying threats of unsustainable US fiscal spending, geopolitical risks, and demographic trends that could destabilise the current economic momentum in the longer term.
In his macro note, “Sandcastle economics,” Peter Garnry, Saxo’s chief investment strategist, emphasises the precarious nature of our current economic growth. He states, “Economic growth will remain stable, but down the road, several factors can destroy our sandcastle…
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