In Italy, a political pairing that investors once considered a worst-case scenario is set to become the new government, yet Italian stocks continue to outperform all other major developed markets this year.
The anticipated government coalition between the hard-right League party and the antiestablishment 5 Star Movement, a combination long considered by analysts to pose a major risk to the country’s economy and the eurozone itself, hasn’t stopped Italian stocks and bonds from outperforming.
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