The Global Liquidity Index has shed light on the extent to which the rise in the value of the US dollar is being driven by monetary policy made in Frankfurt and Beijing, rather than Americas economic strength.
Barings Asset Management is remaining overweight in equities due to a belief that global monetary policy will be supportive of market valuations.
As we enter the second half of 2014 one of the most important themes is the divergence of central bank strategy around the world and how this will hit different asset classes.
Chris Iggo, CIO Fixed Income, AXA IM believes that markets may look back on this period after summer and wonder why volatility was so low.
Central banks have to come up with measures outside QE to stimulate growth and recduce debt levels.
