The world's largest wealth manager says central banks still have plenty of ammo that can keep stocks rallying | Markets Insider

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The world's largest wealth manager says central banks still have plenty of ammo that can keep stocks rallying

Investors who think central banks are out of policy ammunition are mistaken and could lose out on additional policy-driven gains, says Mark Haefele, chief investment officer atThe Federal Reserve has slowed its roll after rapidly deploying unprecedented relief measures, and is expected to stay its course during this week's Federal Open Market Committee meeting., larger asset purchases, and by keeping rates near zero for longer, Haefele said.

Haefele holds an opposing view, and advised clients in a Tuesday note to position for years of accommodative policy. Fed policymakers have already indicated rates will stay near zero through 2022. Markets expect the low-rate environment to last as far out as 2025 to ensure the economy fully rebounds from its coronavirus slump. Cash and the most stable bonds"are likely to deliver negative real returns for the foreseeable future," Haefele said.

 

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