Based on the US experience, loosening monetary policy in Europe should have a positive impact on equity markets
John Robertson
PortfolioDirect
Based on the US experience, loosening monetary policy in Europe should have a positive impact on equity markets. The chart shows movements in the S&P500 (the green line) and the German DAX (white) since 1991 in their local currencies. The similarity in the pattern of movements hardly suggests different policy environments. The German index contains some of the best know global brands across a wide range of industries including Adidas, Daimler, Merck, SAP, Allianz and Siemens. Their market values should reflect more than just European conditions. And it was never possible for the Federal Reserve to quarantine the effect of its policies to locally listed stocks. Just as the Fed policies appeared to be having a diminishing effect on markets as time went on, more aggressive European monetary policy settings may do little more for markets.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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