Many economists have fretted that an unintended consequence of giving away free money, via quantitative easing (QE) and ultra low interest rates, is that prices ultimately rise but nothing extra is produced.
First signs of moderation in global economic growth, moderation of economic growth in China continues, US Fed signals upcoming reduction in asset purchases, equity markets are getting more volatile.
The economic recovery from the Covid-19 shock has given China’s leadership an opportunity to tackle structural problems by tightening regulatory oversight which favours the development of ‘hard tech’ hardware and components over ‘soft tech’.
Although some countries have taken measures to curb the pandemic, the restrictions are limited and the economy is continuing to recover, both in manufacturing and services, says Guy Wagner, Chief Investment Officer and managing director of BLI – Banque de Luxembourg Investments.
Under this uncertain scenario we have received the insights from the main asset managers in the industry too see what we can expect from this second half of 2021.
Guy Wagner and his team write in their latest market report “Highlights”. China, the more moderate pace of growth has been corroborated, Equity markets closed the first half of the year on a positive note, Federal Reserve: potential rate hikes already in 2023 instead of in 2024, Government bond yields remain stable.