Some form of asset market crisis may shortly emerge again and European bonds are clearly most at risk

Some form of asset market crisis may shortly emerge again and European bonds are clearly most at risk. European bonds have lurched higher in recent weeks as the European Central Bank 'appeared ready' to begin buying asset backed securities. The 10-year bond in Spain now yields below 2 per cent per annum and the Italian 10 year bond yields just 2.2 per cent. Clearly these yields suggest that there is something seriously wrong with the mechanics of the European economy. Looking out to 2015 we should see the full commencement of quantitative easing in Europe. But despite the buoyancy in some major equity markets, no one should discount the perverting effects of QE across the globe. It would not surprise, based on market cycles, that some form of asset market crisis may shortly emerge again. Read more: (VIEW LINK)