In its annual report published Sunday the Bank for International Settlements warned that buoyant financial markets are out of sync with the shaky global economic and geopolitical outlook
- “Overall, it is hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally”
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I can’t see what is ‘puzzling’ them given the extremely loose monetary policy from the biggest of the central banks. At the very least this had a huge impact on yield chasing behaviour …
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Anyway. it goes on:
- “Financial markets are euphoric, in the grip of an aggressive search for yield…and yet investment in the real economy remains weak while the macroeconomic and geopolitical outlook is still highly uncertain”
More at Wall Street Journal (gated): Global Markets’ Strength Doesn’t Reflect Economic Outlook, Central Banks Say