Think 2016 was bad?
Wall Street is riding high with stock market indexes reaching record highs but according to big banks the good times may be coming to an end soon.
Workers at major financial firms are saying that another recession is on the horizon – Bloomberg is reporting.
Analysts at the Wall Street behemoths cite signals including the breakdown of long-standing relationships between stocks – bonds and commodities as well as investors ignoring valuation fundamentals and data.
It all means stock and credit markets are at risk of a painful drop.
‘Equities have become less correlated with FX – FX has become less correlated with rates and everything has become less sensitive to oil’ Andrew Sheets – Morgan Stanley’s chief cross-asset strategist – wrote in a note published Tuesday.Today’s situation is drawing comparisons to the financial bubble in 2007 — the year before the worst recession since the Great Depression:(cont..)