While many of the consequences of stimulating economic growth through currency devaluation and cuts in interest rates are known and intended, some are not. In the case of Japan’s lost decade, for example, a depressed currency and low interest rates led to carry trading.
Metals in all forms are a pretty strong barometer of global economic health. However, there does not appear to be a clear picture of what comes next as the U.S. and global economy attempt to move from this period of extraordinary stimulus to more normal conditions.
Once again managed futures found itself in a difficult environment and, although the Barclay CTA Index was negative for a record third consecutive year, there were many traders able to navigate the rough waters to find profitable trading opportunities.
The increasing possibility that interest payments will be missed on U.S. Treasuries poses serious risks to the global financial system and could trigger rounds of central bank intervention should the U.S. dollar go into free fall.
After a back injury forced him to re-evaluate his Olympic dreams, Ben Davies found a new thrill in the competition of trading. Now
managing a long-only gold fund, he strives to protect investors’ wealth while advocating for free market reforms around the globe.
Global central banks buying assets and keeping interest rates low to boost growth have had “positive short-term effects for banks” even as risks from the policies are increasing, the International Monetary Fund said.