The biggest risk in global markets

Charlie Jamieson, Executive Director at Jamieson Coote Bonds, thinks the biggest risk for markets globally is central bank policies losing their effectiveness. As each round of stimulus has been dished out, the effects have diminished, leaving more investors questioning the power of the central bankers. “If we lose faith in the central bankers to engineer those outcomes, then the markets can look very very different, very quickly.” On the other hand, should markets continue to perform very strongly, he suggests the US Fed could be forced to take a more aggressive approach. “The US economy is probably the bright spot in terms of developed economies. There is a danger that they fall behind the curve and need to hike again.” Watch the full interview below.