As the European Central Bank (ECB) moves to reduce monetary stimulus to the euro area, it’s treading cautiously to avoid rattling currency or bond markets in the process. Bond purchases will be scaled back next year, but QE won’t be reversed.
Growth accelerated in Q3, with inflation quiescent in most countries; perpetuating the “Goldilocks” conditions that have generally favored risk assets since early 2009. Global equity markets continued their gallop in Q3, with the MSCI ACWI and the S&P 500 reaching all-time highs.
The European Central Bank is widely expected to announce a winding down of its quantitative easing program on October 26. Though investors are nervous, the ECB is doing a good job preparing markets for the change.
In the first of a three-part series on principles of the low-return imperative, we go under the covers and explain why infrastructure investment may help investors improve the probability of achieving their objectives.
A decade ago, we got the first warnings that the US subprime crisis would go global. Since then, monetary policy has pushed deep into unconventional territory. How will it respond as the backdrop begins to look more “normal”?
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Economic insecurity, social insecurity and political ineffectiveness: these developments have fed a resurgence of populist policies in many regions of the world. We think there’s potential for major impacts on global capital markets.
Populism is here—and it isn’t going away. The ideology can come from either side of the political spectrum, and it can have a big impact on policy, the macroeconomic landscape and—ultimately—how we invest today.
Financial markets will welcome the election of centrist, pro-European Emmanuel Macron as France’s next president. Now that Europe has avoided a major political upset, all eyes will be on the ECB and its next move.
Financial markets welcomed the result of the first round of the French elections on Sunday. Yet voting patterns and the political reality facing the next French president leave much to ponder.