In an important shift, the US Federal Reserve changed revised its inflation target meaning that policy rates will stay lower for longer.
Enduring negative real rates and fiscal stimulus may encourage inflation. The best performing assets will be those that are inflation protected.
One characteristic of the current crisis is the acceleration of many trends that were already underway.
Government support measures in Australia and the US are seeing disposable incomes temporarily rise for some people.
Valuation measures of equities are a significant determinant of future returns, particularly in the US.
Are we seeing the market climbing a wall of worry? The big positioning squeeze, and the impact of low rates on equity valuations.
Trade tensions between the US and China have gained attention, but other shifts are also occurring with implications for Australia.
Quantitative easing, inflation rates and depressed bond yields and their relationship with gold prices.
There is a tug of war between a wall of money and weak fundamentals and the winner in the near term is very difficult to pick.