The first quarter of 2019 saw a sharp recovery in investor sentiment.
After the US Federal Reserve’s dovish turn in January and the renewed easing by Chinese policymakers, the ECB has now also shifted to a more dovish stance and the Fed cemented its dovish position in March. Markets trading as they did in QE years : they have responded positively to this monetary policy shift, with price action mimicking that of the years of quantitative easing.
Downside risks persist. To us, all this adds up to a goldilocks environment that is fragile since we believe a central bank-engineered goldilocks could be destabilised easily.
In their latest outlook, our two analysts present their expectations for the coming months: Maximilian MOLDASCHL, Senior Global Multi-Asset Strategist, Multi-Asset team at MAQS and Guillermo FELICES, PhD, Head of Reasearch and Stratetgy, Multi-Asset team at MAQS.
BNP Paribas Asset Management
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