Consolidate, but don’t bail out of stocks

Investment Committee, Switzer Dividend Growth Fund
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The US Federal Reserve has delivered whatever it takes to see real improvements in the economy. Both sides of the Atlantic have now matched their strong rhetoric with different forms of quantitative easing (QE).

Monetary policy makers are becoming very innovative. Going forward, there will be more stimulus on the way from the emerging economies, particularly China. The risk-on trade has been rewarded.

Quantitative easing (a form of monetary stimulus) is supportive for equities, commodities and high yields. September has to date proven to be a good month, despite what the many market bears had suggested.

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