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Foreign Exchanges Moves Foresee Major Market Developments

Stewart Richardson, Chief Investment Officer, RMG Wealth Management   Financial markets are beginning to show signs of change. Volatility in FX markets in particular has increased (see first chart below) which is often the canary in the coal mine for other assets. Having witnessed a few false dawns already this year, we believe that the signals being generated this week are the ...

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ECB Surprises with Rate Cuts and Stimulus Package

Stewart Richardson Chief Investment Officer RMG Wealth Management   Mario Draghi and the ECB dominated proceedings last week as they often do. Just before we discuss their rate cuts and stimulus package, a word about the Bank of Japan meeting which occurred earlier in the week. The Bank of Japan made no change to policy, a decision that we found disappointing. There is little doubt ...

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“Secular Stagnation” is a Risk in Europe

Stewart Richardson Chief Investment Officer European bond yields have been in free-fall this year with German yields approaching the “Japanese zone” and periphery spreads near the narrowest since the European crisis erupted in 2010. The most recent leg lower in yields has been in reaction to weak economic growth, too low inflation, escalating geopolitical concerns and expectations of fresh ECB stimulus. Although the ...