China dropped rates by .25 bps and reduced reserve ratios last week. India also cut rates more than expected in September.
Fed postponed much expected Sept hikes. BoE keeps pouring cold water on their anticipated rate rise too.
In a nut shell, rates fall during recessions/depressions/slow downs. Rates rise through troughs to peaks. I reckon we are still on the down slope if rates continue to fall whilst others fantasize about raising rates.
IMHO - the recovery is fast running out of steam. It's clear to see simply from commodity prices.
Do the markets justify valuations and levels they are at. NO! Not fundamentally imo but so much money all over the place and the only place it can be earning above 0% rates is in stocks and shares and some tangibles like land and property.
This is why property prices are going up as the mad dash to safety ensues causing people with low incomes unable to afford basic roofs over their heads.
Technically, I think markets should continue upwards as I don't see why anything should change now as things are certainly better than before. RSI hasn't peaked into OB area so some more bull left in the market to maintain momentum.
After some pull back to 2060s expecting another spritely bounce to the 2090s. Why not? It's xmas and we have momentum behind us
I don't have much conviction in the move 50/50. However, in the absence of sound reasoning and common sense - as daft as that may sound, follow the crowd.
