Investors Play Chicken with Deflation

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An asphyxiatingly boring market is growing paradoxically more menacing by the day, driven largely by meaningless pronouncements from the central banks rather than by economic data. It’s not as though investors don’t understand that negative interest rates can’t possibly stimulate capital investment as the economic world flirts with outright deflation.  They buy stocks anyway, impelled by a lack of attractive alternatives. This can’t end other than badly, especially with shares seemingly unable to correct meaningfully or for long.