Massive stimulus from central banks in the U.S., China and elsewhere is driving bubble-like stock returns and could head off a global recession, according to Bank of America. "It's the bubble dream," BofA chief investment strategist Michael Hartnett wrote in his weekly "Flow Show" breakdown of where investors are putting their money. "Fed slashing, oil crashing, China inflating ... and if this China stimulus don't work then geopolitical risks going to soar.
With concerns rising over a moribund real estate market and consumer confidence on the wane, the People's Bank of China emulated the Fed move with its own 50 basis point cut to its reserve requirement ratio for banks and is injecting cash into the financial system by selling sovereign bonds. The PBOC also will implement measures to support the stock market.
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Source: Investingcom - 🏆 450. / 53 Read more »
Source: Investingcom - 🏆 450. / 53 Read more »