How long can the stock markets’ eerie calm last?

Stock markets just keep rising higher to new records. Meanwhile, volatility (the amount of bouncing around stocks do) is at pre-crisis levels, with US equities especially becalmed.

The S&P 500 has moved by less than 1% a day for around 50 trading days, the longest streak in 20 years. We’re not the only ones who have highlighted the mismatch between tepid fundamentals and robust equities. Today’s conditions bear “a worrying resemblance” to 2007, says The Economist.

The Bank for International Settlements (‘the central banks’s central bank’, as it’s known) says that “euphoric” markets are detached from reality.

But there [...]

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