The 1998 crisis could repeat itself – Bank of America

Кризис 1998 года может повториться – Bank of America

Analysts at Bank of America said the threat of another world crisis of 1997-1998. This was, in their opinion, show the trends in the global markets.

Bank of America predicts that global stock markets can happen recurrence of the global crisis of 1997-1998, according to Bloomberg.

Analysts financial institutions argue that this is evidenced by similar market dynamics

Based on the analysis of trends, analysts predict a possible recurrence of the events of 1998, when the Asian region was a world economic crisis and Russia default. According to the Bank, emerging markets are crumbling under pressure from a strong dollar, while shares of tech companies are moving up.

“Steady growth in the United States, smoothing the yield curve of bonds, shrinking the markets of developing countries – this picture is similar to the echo of the events of 20 years ago, when tougher in the beginning of the decade the policy has led to the strengthening of the dollar. Then for three years he had risen by 25%. Emerging markets also at that time was on the decline,” – says a leading investment analyst at Bank of America Michael Hartnett.

At the same time, says Bloomberg, these symptoms are caused by other factors. The decline in the value of currencies of developing countries is relative and occurs on the background of strengthening of the United States. At the same time, by 2020, it is expected that the growth of the economies of Asia will be 6%.

Putin predicts unprecedented economic crisis

We will remind, earlier about a new financial crisis, warned the international monetary Fund.

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