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A year ago the markets zeitgeist was "synchronised global growth". Then it was "narrowing term spread on bond yields". Now it's "China and European growth slowdown" and "US Q1 earnings softness".

Getting off the news headlines, market prices for the last couple of years were broadly consistent with Fed interest rate projections -- slow but consistent rate raises last year and in 2017. That is no longer the case. Now the Fed has backed off the pace of raises and is (IIRC) projecting zero or one for the rest of the year, and markets are projecting rate cuts for the first time in a long time. If people think the Fed will need to cut rates, it's because they think inflation will be down, likely due to lower wage pressures from a softer labour market etc.

Other things: some market indicators have "gotten better". P/E multiples and similar metrics were historically high and have trended down (both due to price drops and earnings increases.) Blame interest rates rising last year IMO, why wouldn't ratios be high when rates are low? They're still high, but not worryingly so.

TBH I don't give much thought to the Chicken Littles. Maybe we'll have a technical recession this year or next, maybe due to trade, maybe due to China or Germany, but for the moment I think people in the markets broadly agree that things are long-run pretty healthy. Famous last words, I guess.

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