Fidelity's McQuaker: 'For things to get better, they may have to get worse'

Spotlight on central banks

The broad-based rally in risk assets characterising most of the first quarter has continued despite global growth fears, putting the spotlight on central banks once again.

But for central banks to step in with more meaningful stimulus that would encourage markets to keep the risk party going, the economic data may have to get worse first. Narrow ‘goldilocks' path for the US At the end of last year, we pointed to global growth fears that would likely require policymakers to intervene further to get global growth back on track, and this appears to be playing out, with all three major central banks enacting supportive policy in 2019. The US Federal Reserve has hit the pause button on their tightening cycle, and in the wake of tighter financial conditions...