[Bloomberg] Economic and geopolitical threats are increasingly at odds with the apparent calm in financial markets.

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Despite war in Europe, renewed instability in the Middle East, worsening trade relations and growing fiscal demands on governments (for defense, the energy transition and aging populations), investors are pricing in further interest-rate cuts and ambitious asset valuations. In fact, they seem decidedly optimistic — often a precursor of surging financial stress.

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h/t mark000


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