News analysis

Be cautious of markets' disconnect with reality

Investors need to beware of a mammoth asset price bubble in the middle of a bad recession

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Amid the series of unprecedented occurrences this year, the most striking yet is the current disconnect between financial markets and the real economy.

And it is one that is becoming more pronounced even as the calls for caution get louder.

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A version of this article appeared in the print edition of The Straits Times on May 13, 2020, with the headline Be cautious of markets' disconnect with reality. Subscribe