"Sleep with one eye open
Gripping your pillow tight
Exit: light
Enter: night
Take my hand
We're off to Never Never Land"
- Enter Sandman, Metallica, 1991
Our long global market dream is almost over. After nine years of relentlessly aggressive monetary policy from major global central banks, the flow of stimulus is heading toward its end. Exit: night. Enter: light. Awake with both eyes wide open, for investors may soon find themselves off to a whole new Never Never Land.
Exit: Night
Global stock markets have a deeply seeded addiction to the euphoria of monetary stimulus. This more than anything else explains how stocks have managed to perform so well during the post-crisis period, despite the fact that the global economy has struggled to get back on its feet.
Nowhere in the world has the reliance on monetary stimulus for rising asset prices been more pronounced
