Halcyon days recede as ECB and Fed step back

Financial Times/Robin Wigglesworth, Kate Allen and Roger Blitz/6-15-2018

“A week of landmark monetary policy decisions has left investors revamping their portfolios to fit a new era of tightening global liquidity.”

USAGOLD note:  The upshot of this article can be summed up with an observation from PGIM’s Gregory Peters that the “halcyon days” of easy money are behind us and that “the opposite of QE has to have some kind of impact.”  It is presumed that the impact is unlikely to be positive in markets that have lived the good life on that easy money for a number of years. It’s not so much rising interest rates that present the problem as it is the lack of liquidity brought about by the retraction of quantitative easing.

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