The global rally in financial markets is unsustainable because it only seems to respond to changes in the real economy when it fits a certain narrative, according to the CIO of investment firm Fasanara Capital.
"I call it fake markets… you know, these days they talk about fake news (but) these are fake markets in a way right?" Francesco Filia, CIO of Fasanara Capital, told CNBC on Wednesday.
Filia argued financial markets had become "complacent" and "insensitive" to fundamental changes in the economy. He suggested while markets appeared to surge higher on so-called good data, a mirrored response lower on negative sentiment had not been evident.
"I think this kind of market environment is both unstable and unsustainable… at some point, something is going to happen that is going to all of a sudden wake up markets as to this overvaluation," Filia said.