Clem Chambers, founder of ADVFN, joined Nick Batsford on the Tip TV Finance Show to discuss the situation concerning equity markets and the possibility of QE for the US and Europe and its effect on inflation.
When will the equity markets find a bottom?
Chambers noted that this is the big question, but he added that if it does come off, we could see another 1000 points in a new leg down.
More QE possible across the world
Chambers commented that QE in the US would be great news for emerging markets, meanwhile, QE from Draghi in Europe wouldn’t help anyone but Europe itself. He added that inflation is outside the country with a trade deficit, so more QE in US would benefit others, whilst the same monetary policy in Europe would hold inflation in Europe as it is running a trade surplus. For the US, Chambers believed that QE would definitely cause a rally in the markets, but central banks like the Fed are trying to slow things down, and attempting to avoid a collapse.