Investors seem to be living in a world that is much more stable, politically, than the real one. Late last week, America’s S&P 500 index hit a new intra-day record and European equities posted their first weekly rise in a month.
Markets shrugged off the Ukraine crisis and Janet Yellen’s debut. Trading was choppy early this week, but optimism still prevails.
This resilience is starting to look complacent, says Nicholas Spiro of Spiro Sovereign Strategy. “No sooner does a risk event emerge than markets brush it off after a brief period of nervousness.” Yet, while markets cling to their “glass-half-full view”, the [...]
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