Monday, September 10, 2018

More fiscal and monetary accommodations are inevitable

The US stock markets are making all time highs with the S&P500 and DOW almost at record highs. There will be a decline at some point in the future, and when that happens, investors should be prepared.

"With respect to asset markets, I think the most important question investors have to consider is how central bankers will react when the global economy weakens and when asset markets decline. Furthermore, how will currencies, capital markets (stocks and bonds) and precious metals, and other asset markets (real estate, collectibles, cryptocurrencies, etc.) react to another round (inevitable in my opinion) of monetary and fiscal accommodations, and other interventions such as tariffs (in short further manipulations of free markets)?"