While QE has historically been administered like a course of antibiotics, today's monetary stimulus has become more akin to a repeat prescription. Fidelity's Trevor Greetham explains...
Improvements in business confidence and lead indicators, combined with commodity price weakness, suggest we are in the equity-friendly recovery phase of the cycle. Historically, this phase has been the best time to hold stocks, with stronger global growth boosting corporate earnings and monetary policy remaining loose. We are hopeful this current upswing will last a while, although we expect the pace of expansion to moderate at some point. The previous upswings since the financial crisis have been unusually short. Private sector deleveraging, fiscal tightening and the stop-go applicat...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes