December edition of Portfolio Construction: Passing the Baton
World stock markets have posted strong returns this year as central banks adopted further easing measures, geopolitical risks lessened and the global manufacturing slowdown appeared to level off. With major central banks all printing money simultaneously for the first time since the financial crisis, monetary policy will likely remain a tailwind next year. However, it is difficult to imagine central banks cutting interest rates much further, particularly as rates are already below zero in many parts of the world. On the policy front, the baton has been passed from central bank governors to government leaders, and we are starting to see a global shift toward supportive fiscal policies. Read more.