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Lower Rates Push Yield Seekers to Higher Risk

Jan. 30 (Bloomberg) -- In recent years, a grand disconnect has opened between economies around the world, which are growing anemically if at all, and the bullishness of investors who only care that central banks are willing to continue shoveling out liquidity.

“Don’t fight the Fed” is the rallying cry, especially among equity bulls. And for 2012, at least the latter part, they were right. Almost every major stock market rose: in the U.S., U.K., Europe -- even Greece -- Japan, China, Australia and Canada.