Central Banks Have "Over-Promised" What Can Actually Be Delivered
Via Scotiabank's Guy Haselmann,
Markets need to retreat from dependency on central bank stimulus which they falsely believe provides the magical elixir that fixes all economic and financial market woes.
At some point during the past few years, central bank stimulus has gone from a net benefit to a source of financial market ailments. Investors who have rightly arrived at this conclusion have shifted from dip buyers in risk assets to sellers of up-ticks (see January 6th note ‘Down Side Up’).