Friday, July 22, 2016

Why Aren't Investors Concerned About 
The Political Risks?
"It's unclear why this hasn't been a significant driver of markets across the board... maybe we just haven't hit the threshold," says $234 billion bond fund Invesco's Ray Yu .. he highlights a general theme of political risks increasing for the last few years &  that we are now seeing tension between established political regimes and populist movements .. "Investors are still dealing with aftermath of negative rates, super-accommodative monetary policy globally and structural need for income, which is mobilizing capital flows in unprecedented ways; “maybe that’s what we’re seeing overcome some of the concerns." .. also: "Everyone's sort of gotten too comfortable with developments in China," warning that "that story is not over." .. Investors "really need to stay atop what policy makers are thinking or where they think they are in terms of executing structural plan," warning that this is "not an area investors should get too complacent about."
link here to the article

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