Sizing up the China consumer landscape

Although the environment for risk assets remains largely attractive, early gains from achieving the soft landing are likely in the rearview mirror for investors. It’s going to get tougher from here. The increasing likelihood of a Fed monetary policy mistake, stubborn inflation, disappointing earnings results, toppling over the US fiscal cliff, rising geopolitical tensions, and contentious elections all pose serious risks to the rally.

Once again, the decision to keep the Fed Funds Rate at its current level comes as little surprise, as attention now turns to the next official FOMC gathering in September.