With the Brexit uncertainty out of the way, investors are now positioning in for more stimulus from the central banks, says Matthew Yeates, Quantitative Investment Manager, at Seven Investment Management, as he speaks bonds, central banks, and the real risk in the market. Joined by Zak Mir, Technical Analyst at Zak’s Traders Cafe, and Bill Hubard, Independent Market Commenter.
Key Quotes
“When there was uncertainty.. people were invested in defensive sectors or cash and now they are positioning for more stimulus from central banks.”
“90% of government bonds are having negative yields, hence there is little scope for further easing today. ECB is unlikely to announce a bazooka today.”
“Where do we go from here? – Investors fear a scenario of disorderly Fed rate hike. The real risk is Fed focusing on domestic economy and pushing up rates. So bond yields could rise and equity markets could get hit.”
“Another real risk is markets under pricing the possibility of Fed rate hike.”