Economics
Central Banks Won't Save Us From ‘Critical Stress’ in Stocks
Dudley Says Stock Selloff Is 'Small Potatoes'
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Central bankers’ quest to wean markets off of stimulus raises the risk that the tantrum in risk assets will persist.
Bank of America Merrill Lynch’s “Critical Stress Signal” was triggered on Feb. 8 amid the simultaneous surge in volatility and selloff in stocks. Typically, that marks the moment to get back into risk assets. But this time looks different, say a team led by equity-linked analyst Abhinandan Deb.