Market gyrations reflect fears about the unwinding of QE
Bountiful free money is not a “normal” state of affairs, and the sooner investors realise this the better – whether they are mum ‘n’ pop savers, private equity, hedge funds or central bankers.
About two weeks ago, before the global market meltdown, three dozen luminaries of American finance gathered for a summer lunch, where they conducted informal polls about the outlook. The results were pretty dull.
The majority at the table voted for a so-called “soft landing” for the US economy, with rates of 3 to 3.5 per cent in a year – and a swing of 10 per cent, or less, for stock prices (evenly split between up and down).
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Financial Times
Gillian Tett is chair of the editorial board and editor-at-large, US of the Financial Times. She writes weekly columns, covering a range of economic, financial, political and social issues.
