IMF warns of ‘stretched’ markets

By Phil Thornton
25 Jun 2020

Soaring prices in bond and equity markets have left investors vulnerable to a crash that could be triggered by an array of risks from corporate insolvencies to Brexit, the International Monetary Fund (IMF) warned on Thursday.

The IMF said there was a “disconnect” between financial market values and the outlook for the real economy, which could pose a threat to a recovery were investor risk appetite to fade.

According to the IMF’s models, the difference between market prices and fundamental valuations is near historic ...

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