Dear Central Bankers... More Please
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A recent fund manager survey by Bank of America Merrill Lynch found increasing investor demand for stimulus. The number of investors who find fiscal policy too restrictive has more than doubled to 23 percent from 11 percent in April. At the same time, the number of respondents who find monetary policy "too simulative" fell to 14 percent from 25 percent.
“Investors have eradicated hopes of growth and inflation that had built up in the early months of the year – and they are looking to policy makers for stimulus," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.
Since the start of the financial crises, governments have spent trillions of dollars to backstop losses in the financial sector and to create liquidity, in hopes of fueling growth. Naysayers have been complaining that all the easy money will stoke inflation, but so far inflation has remained relatively subdued.
With the European crisis flaring up again, and with data out of China and the US still lacking a bit of luster, investors have come to expect central banker to do what they do best... prime the pump.
“Investors have eradicated hopes of growth and inflation that had built up in the early months of the year – and they are looking to policy makers for stimulus," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.
Since the start of the financial crises, governments have spent trillions of dollars to backstop losses in the financial sector and to create liquidity, in hopes of fueling growth. Naysayers have been complaining that all the easy money will stoke inflation, but so far inflation has remained relatively subdued.
With the European crisis flaring up again, and with data out of China and the US still lacking a bit of luster, investors have come to expect central banker to do what they do best... prime the pump.
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