Excuses/reasons to sell? The stock market’s giant vat of worries is spilling over on Monday.
Global banks are tanking over allegations of a money-laundering scandal, second-wave COVID-19 worries, and a possible delay to badly needed fiscal stimulus in the U.S., due to political tussling after the death of Supreme Court Justice Ruth Bader Ginsburg.
Deutsche Bank strategists also see a looming financial crisis, tipped by a “growing overvaluation of assets and mounting debt levels,” and driven by the massive fiscal and monetary policy stimulus efforts.
“Financial crises have often been touched off in the past under such conditions by the inevitable shift from policy ease to policy tightening, which is likely still at least several years away, but could surprise sooner,” said Hooper and the team.
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