Q: Today, Reuters (Mike Dolan) published a piece "Financial Market Storm Brewing.." and the last paras stated:
"If investors are surprised by financial storm, it won't be because they weren't warned. Financial watchdogs have been waving a red flag about overstretched markets for the past year and stressed concerns again this month.
"There are increased signs of complacency in financial markets, in part reflecting search for yield amidst exceptionally accommodative monetary policies," the Bank governor Mark Carney said last week, citing conclusions of the G20's Financial Stability Board which he chairs.
"Volatility has become compressed and asset valuations stretched across a growing number of markets, increasing the risk of a sharp reversal."
Particularly because of Mark Carney's comments, this caught my attention. Any thoughts on how this might play out?
"If investors are surprised by financial storm, it won't be because they weren't warned. Financial watchdogs have been waving a red flag about overstretched markets for the past year and stressed concerns again this month.
"There are increased signs of complacency in financial markets, in part reflecting search for yield amidst exceptionally accommodative monetary policies," the Bank governor Mark Carney said last week, citing conclusions of the G20's Financial Stability Board which he chairs.
"Volatility has become compressed and asset valuations stretched across a growing number of markets, increasing the risk of a sharp reversal."
Particularly because of Mark Carney's comments, this caught my attention. Any thoughts on how this might play out?