Financial markets are sleepwalking towards a crisis

“The most notable thing in the financial markets today is the absence of anything notable,” says Economist.com’s Free Exchange blog. There have been very few sudden or significant moves for a long time now.

The S&P 500 has gone 468 days without a correction, defined as a drop of 10%. That, notes Société Générale, is the fourth-longest period since 1970. Since 1969, the S&P 500 has dropped by 1% or more 27 days a year on average. In the past year, there have only been 19 such days.

“The market’s been lulled to sleep,” says [...]

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