We all know the British Prime Minister’s answer to the intimate question /what are you afraid of PM/: “Events, events and events, my dear friend”.
Many sense the end of the party, spotting bubbles that finally will have to burst.
Nevertheless, a trigger is always needed. It might be the rises in long-term interest rates. /Ruchir Sharma, FT, 1 march 2021/
It might be a new wave of the pandemic. It might be the opposite, a post-pandemic buying spree resulting in lower savings. It might also be the bond market pricing in higher inflation.
Fifty years ago the German and the French government rejected Nixon’s call to buy US government bonds.
Follow the money and geopolitics might have the upper hand to create the next trigger.
Governor Matolcsy, MNB, the Central Bank of Hungary
