BoA: Central Banks Are Creating ‘Fake Markets’…. Buying $2.4 Billion In Financial Assets Every Hour To Support Markets

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Central Banks Are Creating ‘Fake Markets’: Bank of America

Stocks have become detached from reality due to recent interventions from central banks into the bond markets, according to analysts at Bank of America.

Stocks have become detached from reality due to recent interventions from central banks into the bond markets, according to analysts at Bank of America.

In a research note Friday, the Bank of America Securities division highlighted the question of why the stock market is so divorced from reality as one of the most frequently asked by investors.

Despite the economic crisis brought about by the coronavirus pandemic, which has so far seen 38 million Americans file for unemployment and brought about sharp contractions in global GDP (gross domestic product), risk assets have been rallying of late.

Central Banks Buying $2.4 Billion In Financial Assets Every Hour To Support Markets

Bank of America’s Flow Show report suggests central banks have hoovered up more than $4 trillion in financial assets over the past two months.

 

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