Bringing you live news and features since 2006 

Overall QE figure will continue to rise

RELATED TOPICS​

Jeff Keen of Waverton Investment Management gives his perspective on quantitative easing for investors…

Back in 2009, talk that the Federal Reserve would need to carry out USD5 trillion of Quantitative Easing (QE) was considered as wild speculation. Now Central Banks globally have expanded their balance sheets by USD16 trillion.  

Even with the US Federal Reserve announcing the end of QE (except for the reinvestment of coupons), new announcements from the ECB and the Bank of Japan suggest that the overall figure will continue to rise.

Whilst this extends the period of extraordinary monetary stimulus and prolongs the period during which the financial markets are distorted by these huge interventions, it also underlines the commitment of Central Banks to avert the threat of deflation and raises confidence that the global economic recovery will continue. 

Following the increase in stimulus announced by the Bank of Japan last week, the pressure will be on the ECB to ensure that deflation does not take hold in Europe and the very low level of inflation expectations gives Draghi the mandate to move more aggressively.

Financial markets continue to project a much shallower path for US interest rates than that indicated by the Federal Reserve.  We think this is symptomatic of a general complacency towards the potential for higher rates over time. In our view, just a slightly more optimistic view of the global economy, or perhaps less focus on deflation risk, could lead to a much higher level of expectations for interest rates across the developed world.  This would represent a major headwind for the fixed income asset class and therefore we recommend a highly strategic approach to this part of clients’ portfolios.

The macro-economic environment is a complex one but we remain biased towards risk assets.

Latest News

Raymond James Investment Management plans to launch an ETF product platform in 2025 to support strong client demand in alignment..
Aniket Ullal, Director of ETF Data and Research at CFRA Research, has written a note looking at ETFs with exposure..
Tradeweb reports the following data derived from trading activity on the Tradeweb Markets institutional European- and US-listed ETF platforms...
iShares writes that its assets under management have reached USD4 trillion. The firm says this comes off the back of..

Related Articles

Scott Kefer, VictoryEx Capital Holdings
Bailey McCann writes that active ETFs are capturing investor interest, according to the latest data from Morningstar, which finds that...
Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by