Click4Assistance UK Live Chat Software
Enquiry line: +44 207 998 0570
enquiries@fwm.gi
Available 9:00am - 5:30pm (CET)
Futures, Stocks Advance With Crude; Dollar Falls: Markets Wrap Image

Futures, Stocks Advance With Crude; Dollar Falls: Markets Wrap

June 01, 2020

It’s hard to believe that the stock market rally continues unabated despite the grim economic reality supported by unprecedented levels of fiscal and monetary stimulus. We are witnessing a decoupling of stock markets from the real economy, which is unsustainable, and has longer term financial stability ramifications In terms of slower economic growth, lower corporate profits, reduced rate of job creation and misallocation of resources.

 

Investors appear confident that the economy will bounce back quickly, failing which, central banks, will intervene to support equity prices.” A so called win-win. It’s a frightening prospect - the mother of all asset price bubbles. History tells us markets overshoot the upside and downside but always regress to the mean - historical levels. In the meantime best that greed doesn’t get the better of you - non correlated assets and cash - are a much safe bet.

 

Read more in this Bloomberg Article: https://www.bloomberg.com/news/articles/2020-06-01/asia-stocks-to-gain-as-investors-focus-on-economy-markets-wrap