11 July 2016 at 1:20 GMT
The Sydney Morning Herald
Elite funds and banks are quietly amassing global equities and emerging market assets, betting that precautionary stimulus around the world will overwhelm any local damage in Britain and drive one last leg of this ageing financial cycle. It is a risky strategy at a time when the world economy is so precariously balanced, with almost $12 trillion of debt trading at negative yields. Japan has drawn up plans for a stimulus package of $100bn to counter the effects of the surging yen. Above all, the Fed has stepped back from the long-feared moment of monetary tightening. Futures contracts are not pricing in a rate rise until December 2017, even after the blistering pace of job creation in the US last month.
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