Have risk assets taken flight?

The field of behavioural economics reminds us that before we were economists or statisticians or even investors, we were humans. And as part of being human our deep instincts are not always well suited to the fast-forward evolution of financial markets. We tend to remember clearly what happened in the recent past, especially if it was nasty, and imagine it will keep happening. Better to run away to invest another day than stay too long and be devoured. In May last year, when it was apparent Greece had got itself into trouble, investors in risk markets made a disorderly rush for the ex...