Has Mario done it again?
Three years ago the European Union was about to fracture under the weight of its own debt - currency, bond and equity prices in the highly indebted periphery were plunging as risk premiums blew out and then Mario Draghi said he would do whatever it takes to keep things united. After this, risk markets rallied in line with the currency and delivered strong returns for investors as asset prices recovered. After its October 2015 meeting the ECB President hinted about more policy stimulus in December which has once again sparked a rise-on rally. However, Matt Sherwood, Perpetual’s Head of Investment Strategy, Multi Asset finds that any policy delivery in December is likely to spark a risk rally of much shorter duration given prevailing low bond rates, high equity valuations and a lack of corporate performance, with 2015 real EPS growth negative in nearly every region. Read the full article: (VIEW LINK)
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