Central banks ‘racing to the bottom’ means one thing, says Mark Mobius: that the stock market will do ‘very well’

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“Interest rates where they are, stocks begin to look much more attractive,” Mobius says

Global central bankers are in interest-rate-cutting mode of late, as policy makers attempt to avert or at least mitigate a global recession.

‘Everyone seems to be racing to the bottom. Which is actually going to result in the market doing very well.’ “Interest rates [being] where they are,” he continued, “stocks begin to look much more attractive.” His comments come as the Wall Street Journal reported on Thursday that a European Central Bank policy maker, Olli Rehn, had said the ECB in September would unfurl a potent batch of stimulus measures that should include “substantial and sufficient” bond purchases as well as cuts to the bank’s key interest rate to prevent weakness emanating in China from hitting the eurozone.

The easy-money regime has fostered an atmosphere in which some $15 trillion in sovereign debt yields less than 0%, meaning that investors receive less than their original investment when they purchase government-backed debt.Against that backdrop, Mobius says yield-bearing investments will be coveted.

 

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Yes. The StockMarket meaning banks and hedge funds and rich investors will do very well. They will not be holding the bags... All big banks BAML, Goldman, JPMorgan are looking to offload positions to bag holders. Main reason for buy recomendations!

Do you want a $5 bill or a $10 bill?

No brainer

Mobius is full of it. If low interest rates drive money into equities in search of yield, it's a losing scenario. Earnings are declining Q to Q and that is not going to change anytime soon. The bond market are saying growth going forward is going to be low for years, &

เราได้สรุปข่าวนี้มาให้อ่านอย่างรวดเร็ว หากสนใจข่าว สามารถอ่านฉบับเต็มได้ที่นี่ อ่านเพิ่มเติม:

 /  🏆 3. in TH

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แหล่ง: Reuters - 🏆 2. / 97 อ่านเพิ่มเติม »