But David Kelly — the chief global strategist at JPMorgan's $1.9 trillion asset management business — says those investors should hold off on sending a thank-you card. He argues that low interest rates andhave held back the global economy for years, and he believes they're setting it up for 10 to 15 years of sluggish growth ahead.
"Any medicine, taken to extreme, turns into a poison," Kelly said at a media event detailing his firm's long-term capital market views. "There is this assumption out there that monetary stimulus is becoming less effective over time. But it actually quite possible that it is not just less effective, it is actually counterproductive."
Kelly gives three major reasons that those bank efforts have gradually turned into a problem — one that isn't about to fade away, and will likely get worse in response to a major slowdown or recession.. They help the housing and manufacturing sectors, which are fairly small compared to the rest of the country's service-based economy, at the expense of millions of people who are trying to save money.
Big banks are even more critical to the European economy, he says, and since interest rates there are negative, the struggles of those banks are even more devastating., slowing growth.