An interesting article from The Economist looking at similarities between current market conditions and 2007

James Marlay

Livewire Markets

An interesting article from The Economist looking at similarities between current market conditions and 2007. The divergence remains around stimulus and the lack of euphoria in the current market compared to '07. The problem remains for investors that they are being forced to choose between the lesser of two evils - Equities or Bonds. The latest Bank of America Merrill Lynch poll of institutional investors found that a net 48% were overweight equities, even though a net 15% felt that stocks were overvalued. This apparent contradiction is easily explained since an even bigger share of investors felt that bonds were overvalued. The current stimulus settings pose the dilemma of either a weak economy in which case corporate profits will eventually disappoint. Alternatively, the economy kicks on and rates rise sooner than expected. Worth a read: (VIEW LINK)


James Marlay
Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

Expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter