Partly A Question Of Semantics

A lot of discussions around "double-dip" in the US. Christopher Wood, the strategist at CLSA Asia-Pacific Markets, wrote yesterday:

... GREED & fear is not an economist and is not going to get into a discussion about whether this will prove to be a “double dip” US or just a severe loss of economic momentum. This is partly a question of semantics. The critical point from a market standpoint is that the bond action is giving a strong message that nominal GDP growth is slowing in the US, and it is clear from the Japanese experience since 1990 that stock markets trade around swings in nominal GDP growth in a deflationary environment.

Click on chart to enlarge, courtesy of CLSA Asia-Pacific Markets.