Fisher Investments on Global Monetary Policy | Capital Markets Update

In this video, the Investment Policy Committee discusses global monetary policy: what happened in 2018, what we expect for 2019, and what quantitative easing (QE) and zero or negative interest rates due to the economy.

In 2018 the Federal Reserve continued raising interest rates and reducing its balance sheets. And the European Central Bank (ECB) discontinued quantitative easing (QE). In 2019 we expect central banks may well continue to offer ineffective policies or to make other missteps. But unless central banks do something really extreme the impact is likely less than feared. We believe that extreme monetary policies—QE or zero or negative interest rates—are bad, not good for the economy. Rather than stimulating the economy or increasing money supply growth, such policies are depressive. In this economic cycle, which has featured a lot of these sorts of policies, we’ve generally had weaker economic growth than in past cycles and much weaker money supply growth.

On the other hand, the emergence from such monetary policies could be positive for stocks and the broader economy. Regardless, we advise against reacting hastily to changes in monetary policy. More important is the global money supply. Right now it is growing just fine and we’re not seeing rapid growth (which can be inflationary) nor are we seeing contraction (which could indicate that credit is too tight).

To learn more investing tips, visit www.fisherinvestments.com
Please subscribe and comment below.

Connect with us on:
Facebook - https://www.facebook.com/fisherinvestments
Twitter - https://twitter.com/fisherinvest
LinkedIn - https://www.linkedin.com/company/fisher-investments

Видео Fisher Investments on Global Monetary Policy | Capital Markets Update канала Fisher Investments