'Greater fool' theory could be fooling us all

What does a Swedish study about psychological biases have to do with the state of financial markets? The answer: More than you might imagine.

Financial markets are stuck in a strange paradox where central banks are turning more negative about the world's economic prospects but equity markets are rapidly climbing to new all-time highs.

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A version of this article appeared in the print edition of The Sunday Times on July 28, 2019, with the headline ''Greater fool' theory could be fooling us all'. Print Edition | Subscribe