Market Strategy Video November 2014
Faced with a weak economic recovery, declining oil prices and potentially floundering prices in general, central banks have undertaken a number of different measures. Although thanks to these concerted efforts – albeit interventions that very greatly, stock markets are recovering, at the same time, these different measures have generated a certain level of volatility on the financial markets.
While the US Federal Reserve has announced the end of its bond buy-back programme – a widely expected announcement, the Bank of Japan shocked the markets with two keys announcements. They will not only be increasing the size of their asset purchase programme but also their Government Pension Investment Fund, the world's biggest pension fund, will be shifting its asset allocation towards risky assets due to low interest rates.
And yet despite these two major market evolutions, and the predicted volatility of the market through the end of the year end, we remain fundamentally optimistic about risky assets.
1. Volatility is back
2. Bank of Japan's surprise