Contrarian: The risk of rationality

Even though markets have been hitting new highs, now might be the time to challenge the current illusion of normality, which could be a painful reality check for traditional asset classes.

Contrarian: The risk of rationality

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Summary

Markets have shrugged off a number of political shocks that would historically have triggered a re-evaluation of risk as investors come to terms with the increased uncertainty. 

However, that does not mean all is booming, with productivity falling, persistently weak real wage growth and many markets seemingly dependent on extremely loose monetary policy.

Markets can remain irrational but the further they go, the more downside is likely.

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