Will a yield crash follow the resources crash?

Like economies, sharemarkets move in cycles, ranging from the excessive pessimism seen in early 2009 to the over-optimism apparent today.Greatly assisted by rock-bottom interest rates here and in the US, complacency about risk partly explains the expensive nature of both countries’ sharemarkets. Were these risks adequately priced, markets would not be as expensive.Unfortunately, this complacency – as noted in a recent blog post by The View from the Blue Ridge – suggests investors who pile into markets now may be doing so at or near the top.The post discusses the trend in the number of American M&A deals exceeding $1bn,...

Like economies, sharemarkets move in cycles, ranging from the excessive pessimism seen in early 2009 to the over-optimism apparent today.

Greatly assisted by rock-bottom interest rates here and in the US, complacency about risk partly explains the expensive nature of both countries’ sharemarkets. Were these risks adequately priced, markets would not be as expensive.

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