Investors should brace for rocky market summer: US bank analysts

Tokyo

WITH stocks remaining near record highs and bond yields lingering below historical averages, here's another warning that investors are complacent about economic and policy risks.

This time, Bank of America Merrill Lynch (BoAML) has a neat historical reference: the meltdown in US stocks that occurred after Congress rejected the Bush administration's request for a US$700 billion rescue fund amid the financial crisis in 2008. A smaller scale of that may be in the offing, triggered by a collapse in investor confidence that the business-friendly tax reforms President Donald Trump has promised will get done.