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Liquidity and Macro Compete for Upper Hand
It is sometimes said that two emotions drive the capital markets, fear and greed. That may cast it in moralistic terms, but there does seem to be two attractors that the pendulum of market sentiment is presently swinging between. On the one hand, central banks have eased monetary policy through conventional and unconventional measures. Governments have responded as well. Varying from country to country, officials have replaced a large part of the income that has been lost until now. Easy financial conditions encourage investors and speculators to buy riskier assets. That said, the quarter-end could see some large ... (full story)