WHY ARE MARKETS ACTING SO CRAZY? — Mohamed A. El
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Posted On: 08/19/2014 2:37:42 PM
WHY ARE MARKETS ACTING SO CRAZY? — Mohamed A. El-Erian on BloombergView: “The past week saw a dynamic in financial markets that, not long ago, would have been deemed quite unusual: Prices of all kinds of assets, from safe government bonds to risky stocks, rose together. German bunds and U.S. Treasuries gained, pushing yields lower, as the Standard & Poor's 500 Index approached its all-time high.
“The movements continued to confound the once-traditional pattern, in which bond prices rise and stock prices fall when investors expect the economy to perform poorly, and vice versa. There are various explanations, some more consequential than others. One interpretation is that investors expect hyperactive central bankers to remain their best friends, buoying markets with continued unconventional policies”
http://bv.ms/VBbps2
“The movements continued to confound the once-traditional pattern, in which bond prices rise and stock prices fall when investors expect the economy to perform poorly, and vice versa. There are various explanations, some more consequential than others. One interpretation is that investors expect hyperactive central bankers to remain their best friends, buoying markets with continued unconventional policies”
http://bv.ms/VBbps2
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