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Bank of America Corp. Analysts predict that the global stock market could be a recurrence of the global economic crisis of 1997-1998
This, according to analysts of a financial institution, shows a similar dynamic markets, according to Bloomberg
On the Trend analysis base, analysts predict a possible recurrence of events According to the bank, emerging markets are collapsing under the pressure of a strong dollar, while stocks of high-tech companies rise [196]. In 1998, when the global economic crisis hit the Asian region and in Russia, it was a defect
. 59002] "The sustained growth of US smoothing the bond yield curve, reducing the markets of developing countries – all of this resembles an echo of the events of 20 years ago", said Bank Hope. 19659002] All the aforementioned symptoms of banking analysts are compared to the situation of the 1990s. Then the strengthening of the beginning of the policy decade led to the strengthening of the dollar: in three years it increased by 25%. Emerging markets were also at the same time at the time.
Now, the bank emphasizes, the bond market in developing countries is falling, reaching a minimum since the global financial crisis. At the same time, according to Bloomberg, the symptoms indicated are caused by other factors.
The reduction in the value of currencies in developing countries is relative and occurs in the context of US gain . At the same time, the Asian economy is expected to grow by 6% by 2020.
The risks of a new recession had already been warned by the World Bank in the report on the global economic outlook. Despite the fact that forecasts for the global economy for the coming years are generally promising, in the global cyclical economy, the recession takes place every ten years – this period has expired since the 2008 financial crisis , notes the report.
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