Global liquidity is shrinking and that's no bad thing
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The average price of shares across the 23 rich countries in the MSCI global index was up by 45 per cent in the year to the end of April. In the poor countries, average prices were up by 49 per cent. In other words, the prices of all sort of assets in all sorts of places are very high and getting higher. Investors were described by one of the governors of the US Federal Reserve, Lael Brainard, as “ebullient” on expectations of a strong post-COVID economic rebound. The value investor Jeremy Grantham prefers to describe investor behaviour as “hysterically speculative”. Advertisement What...
The average price of shares across the 23 rich countries in the MSCI global index was up by 45 per cent in the year to the end of April. In the poor countries, average prices were up by 49 per cent. In other words, the prices of all sort of assets in all sorts of places are very high and getting higher. Investors were described by one of the governors of the US Federal Reserve, Lael Brainard, as “ebullient” on expectations of a strong post-COVID economic rebound. The value investor Jeremy Grantham prefers to describe investor behaviour as “hysterically speculative”. Advertisement What...
Inflation-adjusted government bond yields are rising and so is pressure on Fed and ECB policymakers to somehow tamp down the increase before it wrecks the economic recovery they have carefully nurtured with enormous amounts of money-printing. Sovereign yields have risen this year as prospects for U.S. fiscal stimulus and the COVID-19 vaccine rollout lifts growth ...
Why the reflation trade can work for Gulf economies Cornelia Meyer Short Url https://arab.news/vc7mp US Treasury yields have turned positive. The most significant jump was the 10-year Treasury note, which jumped from 0.72 percent in September to 1.375 percent on Monday morning. The questions to ask are: What is behind the move? What does it mean for equity markets? And what are the implications for emerging markets, especially the Gulf Cooperation Council (GCC)? The name of the story is reflation, or rather a fear of inflation. Since last March, central banks have pushed $6.6 trillion of ...