“Stockholm syndrome” is a term used to describe when hostages begin to empathise with, and even trust, their captors. It’s also what Bank of America Merrill Lynch thinks is happening to investors going big on shares right now — and their captors are central banks. The bank’s European Equity Strategy has put out a note saying investors are facing a “lose/lose” situation by piling into stocks. Globally shares are up 5% so far this year as investors embrace risk, while the safer bond market is down 3%. That’s because investors assume central banks who are currently pumping money into economies …read more
Source: Business Insider
