Breugel’s strange depiction of the Fall of Icarus, inspired by the poem from Ovid
by Ambrose Evans-Pritchard
Bank of America calls it the Icarus Trade. Global stock markets will surge by another 10pc in a parabolic ‘melt-up’ this quarter, akin to the final stage of the dotcom boom.
This will be followed by a mirror ‘melt-down’ later in 2017 as the US Federal Reserves squeezes global liquidity, and rising bond yields puncture the Trump reflation trade.
Michael Hartnett, the bank’s investment strategist, says there will be a perfect moment for the ‘Big Short’ within a few months, but first we must all wait for the speculative fever to pass. The warning signs of a market top are not yet flashing red.