The Removal Of 'Event Risk'

Via Mark J. Grant, author of Out of the Box, The removal of “event risk” is the bottom line which defines the markets currently and which is why there is such a large disparity between economic fundamentals and the markets’ collective reaction. Short and sweet; risk has subsided or at least that is the common perception. Now this is the conclusion and one that has been long in precise comprehension as I have struggled for clarity to understand why equities and bonds have behaved in one way, gone up, while the financial and economic conditions in America and Europe have deteriorated. The markets were first driven the giant slosh of money created by the world’s central banks resulting in higher stock markets, lower absolute yields of Treasuries and our extended bout of fixed income compression but now that is only one part of the equation, a fourth of the equation to be exact, and ...