Global Liquidity Flood
One week after the U.S. Federal Reserve cut interest rates by 50 basis points, China has taken the opportunity to follow suit and reduce the cost of capital in China to help support the economy.
In this week’s update, we review the global central bank easing and its impact on asset prices, opportunities, and risks for investors.
Key Takeaways
- With China following the Fed’s move to lower interest rates, you now have the potential of a global liquidity flood
- Low recession risks + falling prices = More rate cuts?
- High beta & growth > Low beta & value
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