Nomi Prins, former Wall Street Banker, White House adviser and author was the key speaker at our investment conference held on 15th May at Stoke Park.
Nomi explained the key Geo-Political events that are currently driving the economy and stockmarkets. “Central Bank monetary policy of low interest rates and easy money are set to continue for a lot longer than people think. We are 10 years on from the financial crisis but the emergency measures that were introduced to reflate asset prices are still in place because Central Banks do not want to de-rail the economy or the stockmarket – consequently there is no ‘Plan B’.”
Over 50 guests listened to Nomi explain how Central Banks acted together to provide the necessary liquidity required to save the global banking system from collapsing. This co-ordinated action was instrumental in restoring confidence and avoiding a 1930’s depression. The policy was designed to gain time for the regulators to fix the problems and allow the global economy to recover. Unfortunately the reality is that global debt has continued to increase and stockmarkets have become dependent on low rates.
Steve Wilson, Managing Partner picked up on the theme; “Lots of liquidity and low rates have seen asset prices soar, but wages have been stuck and inflation has remained historically low. Both the Federal Reserve and the Bank of England have talked about increasing interest rates but the fact is that both of these Central Banks did not put rates up as expected this month amid fears of a slowing global economy and a wave of stockmarket volatility”.