BAML WARNS: The markets will soon face ‘the ultimate risk’

Thursday, August 20, 2015
By Paul Martin

Aug. 20, 2015

The primary driver of market performance over the past seven years hasn’t been company performance.

It has been central-bank action, the analysts at Bank of America Merrill Lynch argue.

From the US to Japan and China to Switzerland, central banks have moved interest rates and foreign-exchange rates as they have overwhelmed the markets with loose monetary policy.

Now their influence will begin to decline. The US looks ready to start down the long road to reducing its presence in the market. And that is likely to lead to a bunch of wild market moves.

Bank of America Merrill Lynch strategist Michael Hartnett said in a note on Wednesday: “We believe the inexorable rise in volatility as QE programs wane leads to the ultimate risk.”

The Rest…HERE

Comments are closed.

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter