Quarterly Bulletin Q3 – 2016

Until recently, the expansion of global central bank balance sheets seemed con-demned to increase indefinitely. But (thankfully), monetary policy makers have had a serious wakeup call: quantitative easing (“QE”) is less and less economical-ly effective and potentially harmful in the setting of risk premiums via negative short-term interest rates.

Archives

2016

A multitude of risk factors have unsettled the markets during the first six months of the year.

2015

Fortunately, the North American economy continues the expansionary momentum en-joyed over the last 5 years. Despite some ambiguous data, the improving economic conditions are palpable. We do not see any signs of a pending recession, therefore North American equity markets should do well. The risks perceived by investors are related primarily to three concerns.

2014

Q3 2014 allowed some financial terms, absent from our lexicon for several years to resurface. Indeed, despite globalization which has been accelerating for decades, many economists and investors are now once again arguing in favor of the “decoupling” of economies to the benefit of the US and UK and to the detriment of Europe and […]

2013

QE = RT « Quantitative Easing = Risk Taking ». This seems to have been the magic formula in 2013, a remarkable year for risk as- sets, most notably for equi- ties and corporate bonds.