Blokland’s daily sketch

Blokland’s daily sketch


What if

  • Jeroen Blokland
    Portfolio Manager

What if the Federal Reserve and European Central Bank fail to give markets what they want? A lot of monetary easing. Given the latest remarks of a number of regional presidents, it seems that the Fed is not willing to go all-in at this point in time. It is likely to cut rates again in September, but with a growing reluctance. An actual easing cycle seems unlikely, simply because the economic data is not bad enough. For the ECB, there is much more room for cuts and the announcement of another round of QE based on stubbornly low inflation numbers. In the Eurozone, however, there is a growing political and social dislike of negative rates owing to the many unwanted side effects, such as dwindling bank profitability, zombie companies and negative savings rates. If anything, volatility looks like a given in the coming weeks.

Conozca las perspectivas más recientes
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As a senior portfolio manager I use charts to illustrate financial issues every day. I tweet my favorites as @jsblokland and was named 'one of the 50 most important people for investors to follow in 2018' by MarketWatch.
Previous editions of the daily sketch can be found on my personal financial markets blog. All graphics provided are collected from Bloomberg data and public websites. They do not always reflect my personal opinion and may also not necessarily reflect the opinion of Robeco. Please cite all references or quote the original source if replicating content.

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