Dear Switzer subscribers, June has seen a strong recovery in global equity markets, with the losses of May already recovered. The question becomes, what changed? Simple answer: central bank language.
There’s an old adage “don’t fight the Fed”. Nowadays, more accurately, it’s don’t fight the Fed, ECB, BOJ, BOE, PBOC and RBA all working in concert.
This month we’ve seen coordinated “jawboning” from central banks about the possibility of lower interest rates and even the potential reintroduction of QE.