Tuesday, July 12, 2016

Funds Bet That Emergency Global Stimulus 
Will Trump Brexit Worries
Ambrose Evans-Pritchard highlights how Swiss money managers are quietly buying up stocks, betting on a global stimulus program by central banks & governments .. "Elite funds and banks are quietly amassing global equities and emerging market assets, betting that precautionary stimulus around the world will overwhelm any local damage in Britain and drive one last leg of this ageing financial cycle. It is a risky strategy at a time when the world economy is so precariously balanced, with almost $12 trillion (£9.26 trillion) of debt trading at negative yields and the international system disturbingly out of kilter. The hypothesis is that the authorities have overreacted from an inchoate fear of contagion from Brexit, without knowing quite what the risk is."
LINK HERE to the article

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