It finally happened: investors are so bearish that a contrarian “buy” signal has been triggered. The Bull and Bear indicator developed by researchers at Bank of America Merrill Lynch is finally indicating Buy, one year after climbing so high that it triggered a Sell signal.
There’s no easy way to put this: the central banks are like the naked emperor in the well-known story. And the only solution that could save us from the next recession is so politically sensitive that it will not be put into practice.
Investors in European equities have had a great time since the European Central Bank (ECB) made a U-turn on money-printing and joined the global currency war, but that has changed recently and many investors wonder if the change is more than a temporary setback.