In today’s briefing:
- Global Monetary Policy Easing Cycle: Nuanced Challenges Across Jurisdictions
- Why New Highs Can Beget More New Highs
Global Monetary Policy Easing Cycle: Nuanced Challenges Across Jurisdictions
- Sweden’s central bank joined Switzerland’s in cutting its policy rate due to falling inflation. The Bank of England and European Central Bank could follow in June, ahead of the Fed.
- Housing has been adversely impacted due to the global monetary tightening cycle, but capitulating to political pressure to ease the pain by prematurely easing policy could undermine central banks’ credibility.
- US political patience towards the Fed’s “higher for longer” policy approach and a stronger dollar could be tested as the presidential election approaches, thereby placing pressure on the Fed.
Why New Highs Can Beget More New Highs
- Stock prices have achieved fresh all-time highs and there is nothing more bullish than new highs.
- Stocks are rising because of strong technical positions, progress on disinflation, and continuing signs of growth.
- These three factors are combining to be supportive of high stock prices ahead.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
