FRANKFURT, Germany (AP) — Investors have ignored poor economic news as stocks have risen, leaving markets now vulnerable to unsettling volatility and potential losses, an organization of the world’s central banks said Sunday.
The Bank for International Settlements said central banks’ policies of record low interest rates and monetary stimulus had helped investors “tune out” bad news — every time an economic indicator disappointed, traders simply took that as confirmation that central banks would continue to provide stimulus.
Recommended Stories
Print subscriber? Click here to login/register your account
Digital subscriber? Click here to login/register your account.