Hints and tips:
...Simon Derrick at BNY Mellon also points out that the strains are spreading far and wide....
...global financial crisis first erupted in 2007, investment experts have observed a “risk-on, risk-off” cycle in which asset prices all move together in response to global shocks, whether the collapse of Lehman...
...“I find the lack of movement amazing,” says Simon Derrick, currency strategist at BNY Mellon. “There was a similar eerie calm before the collapse of Lehman Brothers in 2008.”...
...But since the collapse of Lehman Brothers, the dollar has been one of the assets most sensitive to the so-called “risk on, risk off” phenomenon....
...After the crash of Lehman Brothers and the seizure of the world financial system, it was China’s emphatic stimulus of 4tn renminbi (or about $570bn) that started a turnround in asset prices and then the...
...“We have a growing suspicion that the worst may be behind us,” Mr Derrick said....
...BNY Mellon’s Simon Derrick, currency strategist, makes the point that investors are somewhat taking leave of their senses when faced with the choice of extra yield versus added risk or crisis exposure....
...But there are signs that the pattern of dollar weakness seen ahead of the collapse of Lehman Brothers has started to re-emerge in recent months....
...The QE factor and the strong start to the US earnings season propelled the FTSE All World Index to highs last seen around the time of the collapse of Lehman Brothers in September 2008....
...Perhaps more significant has been the vicious circle of blame that followed the collapse of Lehman Brothers a year ago....
...Simon Derrick, of Bank of New York Mellon, picks out the currencies of Taiwan, Peru and South Korea as consistent currency gainers against the dollar....
...An e-petition launched by Derrick Lyon, the FT reader who first proposed the idea, is now available on the Downing Street website....
...Gold should look increasingly attractive,” says Mr Derrick. www.ft.com/gold...
...He said: “There is still a large degree of uncertainty over the impact from the unwinding of Lehman’s positions....
...But the focus fell back on the US on Thursday amid reports in the Financial Times that Lehman Brothers failed to offload 50 per cent of its shares to Korean and Chinese investors and fresh worries over Freddie...
...“The fundamental factors that have supported our bullish view for the past few years remain in place,” said Lehman strategist Ian Scott....
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