This monthly commentary gives a roundup of global markets and trends.
In this edition:
- Last month marked the 50-year anniversary of President Nixon taking the US off the “Gold Standard”, which made it easier to issue more debt to finance growth.
- This has enabled the US authorities to deliver unprecedented fiscal and monetary stimulus to support the economy during the pandemic, leading to the shortest recession in history.
- Markets have grown increasingly dependent on loose monetary policy and there is considerable uncertainty on how they will react when it is withdrawn.
- While markets are currently supported by earnings, there may be volatility ahead if the Federal Reserve decides to taper.
This article was previously published on Tilney prior to the launch of Evelyn Partners.