The charts are presently flashing some powerful signals on the likely course of the world economy. If I had to sum up that message I would say, global economic growth is going to slow, possibly dramatically.
One chart telling a story is the Brazilian Bovespa index. As recently as 29 May it hit an all-time peak of 73,920.38. Investors saw great potential for Brazil against the backdrop of booming commodity prices, both hard and soft. Since then though it has been all down hill and the latest level for the index is 51,888, a decline of almost 30 per cent. On a long term chart the index has broken the massive uptrend since end-2002, which has taken the index up from around 8,000.
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