There are ten key factors facing the economic recovery which investors need to be cautious of, Jim O’Neill, head of global economic research at Goldman Sach, wrote in a research note Sunday.
O’Neill’s first factor is the fiscal issues facing the euro zone and the battering that many of its debt-laden countries are getting in the bond market.
"Those of us that have been arguing that the issue is containable … are starting to struggle as the price action remains pretty unforgiving, especially now towards Spain, and even France," he said.
The euro zone’s fiscal and debt situations aren’t as bad on an average basis compared to other counties such as the U.S. and Japan, according to O’Neill.
"Japan’s is much worse. Many think that the (European Monetary Union’s) fiscal position is just a ‘warm up’ act for the real stuff coming up," he said.
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