Outlook for Investment Markets
Investment markets have enjoyed a strong risk rally over the last six to nine months. The recovery is rolling through the US, and central banks have been willing to do whatever it takes to take out tail risks [the likes of a recession or another GFC]. Policy was practically forcing people to take on risk, in a situation where economies were recovering, and it has paid off. However, the state of risk asset valuations when seen against the more recent mixed economic backdrop has caused concern amongst some market participants.
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