Trade of the Decade
7. The flood of global quantitative easing/liquidity/credit has flowed into risk-assets as zero-interest rate policies (ZIRP) have created a mad rush for yield.Rather than create new borrowing and spending in the real economy, as the Fed claims was the intention of its policies, the trillions of dollars, euros, yuan, etc. have flowed into emerging markets (many of which are up fantastic percentages in the past few years), commodities, corporate debt (which as surged to $7 trillion in the U.S.), Chinese real estate and developed-nation's equity markets.This has created global bubbles in a variety of asset classes.
Why this isn't obvious to more analysts I don't know.
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