Fidelity's Greetham expects more QE by year end

The manager of Fidelity's Multi-Asset funds uses an ‘Investment Clock' model to determine the various stages of the economic cycle, whether it is experiencing stagflation, reflation, recovery or overheating. At present, Greetham says we are in a bond-friendly reflation phase, in which GDP growth is weak and inflation is falling as commodity prices decline and unused capacity persists. "Headline CPI rates are falling again and core CPI rates have been dropping for over a year. Ample spare capacity should keep inflation rates very low in developed economies. US core inflation is up 0.89...