Market Watch

Markets The equity markets fall from the previous week gathered pace until non-US central bankers raised their heads and promised action. As expected by Market Monetarists, markets rallied at that point. The power of expectations is awful to behold, especially at turning points. Financial market participants often use the cliché that “bad news is good news”. This very often refers to the phenomenon when bad economic news is interpreted by markets as meaning central banks are likely to ease monetary policy. It usually leads to flat, directionless, stock markets. Things look best when “good is news is good news”. For… Read More