Regardless of whether you are bullish or bearish about the direction of the world's financial markets, the charts in this article, in my view, are worth very close observation. Essentially, the research by Bank of America Merrill Lynch pointed to interest rates in 2016 being at astronomically low levels. And by astronomically, I mean astronomically low in historical terms. Interest rates today are marginally higher but the difference is not that great; we are still in a period of very low interest rates.

The real point I am making is that we could be in unchartered territory. We have no benchmarks or precedents as to what has happened before. The scale of liquidity pumped into the system since the financial crash of 2007/08 is simply breathtaking. Presumably, the unwinding of leverage will have the opposite impact of pouring liquidity in. That is to say, asset deflation. And the backdrop appears to be a broader political uncertainty.

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