Geneva Management Group Q3 2017
Geneva Management Group
Since the 2008 crisis, excess liquidity provided by central banks has been a blessing to all financial and investment market actors. Restoring confidence was crucial in stopping the collapse of financial systems and has been a key support for economies trying to recover, while simultaneously giving time to countries to manage their unbalanced budgets. In recent years, a euphoric side effect has become apparent. Brexit, the US elections and other instances, can be cited as examples. Indeed, why worry so much when monetary authorities provide such a great safety net? Their excess liquidity, resulting from low interest rate policies from major central banks and their asset purchase programs, certainly lower investor wariness.