Tag Archives: Fed taper

Investors fear inflation but run to it

Recent capital flows highlight a paradox: investors are afraid of inflation, but seem to have increased their allocation to just the assets that would do worst out of it.

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The Fed starts a dangerous dance with the market

With baby steps, the Fed and other major central banks are beginning their journey back towards some semblance of normality.

This will be a big resilience test for a financial system which, for more than a decade, has relied on repeated rounds of monetary generosity. Continue reading

Market turmoil tests the power of central banks

The turmoil we are currently seeing in stock and bond markets is just one battle in the war that has been going on in capital markets for a long time: debt versus equity versus central banks.

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Trump signals the end of central bank independence

We live in such strange times that most people don’t even notice how quickly certain principles that until not long ago appeared fundamental for Western societies are being eroded.

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The great Fed unwind could cause market turmoil

A recent working paper published by the International Monetary Fund looks at the impact of unconventional monetary policy on an open economy, taking Canada’s case as an example.

The paper’s main finding is that unconventional monetary policy by the Canadian central bank has had expansionary effects on the Canadian economy. Continue reading

Central banks have bad news for property investors

As the major central banks are slowly retreating from their policy of asset purchases, we will probably witness some of the side effects of this withdrawal.

Warren Buffett famously said that “Only when the tide goes out do you discover who’s been swimming naked.” The tide is going out only slowly, but we are beginning to see, at least in the UK, the damage the ultra loose monetary policy has done.

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US dollar strength could spark major crisis: experts

The strengthening US dollar after the end of the Federal Reserve’s quantitative easing could starve the world’s financial markets of as much as $10 trillion in liquidity, investment advisory firm CrossBorder Capital has warned.

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Investors are bearish on emerging market currencies

Inflows into emerging markets continue to dwindle as volatility increases and as the Federal Reserve is winding down its asset purchases, an investor survey from Bank of America Merrill Lynch shows.

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Earnings season positive so far

Earnings season has started off reasonably well, indicating that the US economy is likely to continue its recovery and hopefully pull the rest of the world along.

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Biggest overweight position in banks since 2006

Investors are bullish on stocks, recording the biggest overweight position in banks since 2006, a survey of fund managers by Bank of America Merrill Lynch showed on Tuesday.

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