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'Good news' shock could kill the five-year-old bull market
If bad economic news continues to translate into good news for investors, any sharp acceleration of the world economy from here could well kill off the long-running equity bull market. While a mid-summer wobble in global markets was blamed variously on anything from peripheral European bank woes to regional political conflicts from Ukraine to the Middle East, it's the familiar "bad news is good news" trope that's won out. This seemingly perverse interpretation of negative or subpar economic reports as a reason to buy both stocks as well as bonds has been a feature of financial markets of recent years. So far this ... (full story)