Funds Bet That Emergency Global Stimulus Will Trump Brexit Worries

Swiss wealth managers are among those quietly buying equities, betting on global stimulus

by Ambrose Evans-Pritchard
Telegraph.co.uk

Elite funds and banks are quietly amassing global equities and emerging market assets, betting that precautionary stimulus around the world will overwhelm any local damage in Britain and drive one last leg of this ageing financial cycle.

It is a risky strategy at a time when the world economy is so precariously balanced, with almost $12 trillion (£9.26 trillion) of debt trading at negative yields and the international system disturbingly out of kilter.

The hypothesis is that the authorities have overreacted from an inchoate fear of contagion from Brexit, without knowing quite what the risk is.

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