Opinions expressed herein are those of Brett Ewing and S. Lance Mitchell and do not represent those of Centaurus Financial, Inc.
Central Bank Coordination Rumors Becoming Reality
- In early March we wrote a column about the need for Central Banks to act together and show solidarity in fighting off the global liquidity crisis
- Little did we know a dialogue of coordination had already begun between FED staffers and PBOC officials for advice on the Chinese market selloff
- More recently, rumors have been circulating about the latest Shanghai G20 meeting and “arrangements” that had been made between the four of the largest and most active Central Banks: the FED, PBOC, ECB, & the BoJ
- Dollar stability was at the center of the discussion and we believe this proves the various Central Banks around the world still have aligned intentions & the wherewithal to act together when needed to stem the tide of global liquidity concerns
- Since the meeting the dollar has pulled back around 5% and concerns have eased in China over liquidity and the need to devalue their currency
- The risk markets have responded to the stability, skyrocketing up in tandem with the fall in the dollar and areas such as emerging markets have outperformed
- We continue to believe that as long as Central Banks can work together to achieve dollar stability that risk assets should have plenty of runway—especially things like emerging market stocks and high yield & emerging market debt
Securities and advisory services offered through Centaurus Financial, Inc., member FINRA and SIPC, a registered investment advisor. Centaurus Financial, Inc. and First Franklin Financial Services are not affiliated companies. This presentation is for educational purposes only and is not intended for investment advice or a solicitation of services.