A new phase in the Financial Markets
Since the financial crisis of 2008, markets got used to very low interest rates, as set by the different central banks world-wide. The Covid-sanitary crisis has even lengthened this expository phase further. But the war in Ukraine has proven to be the turning point, both geopolitically as well as for the financial markets. With inflation rampant, central banks were forced into action and increased borrowing rates quickly. This has had a profound negative impact on markets, obviously on bonds and equities but also on real-estate assets and even crypto’s.
The accommodating monetary policies, will have to be rolled back further over the coming period. The volatile political climate as well as trade tensions are scaring investors. Reputable banks have gone belly up in the recent past. This has eroded the notion of banks as safe havens, also because current interest rates are mostly below the level of inflation. The Euro is no longer under immediate attack but tensions are rising within the union, especially between Eastern and Western countries. Politicians do not appear to have a solution on how to solve the problems at hand and often just panic. Global financial markets suffer as a consequence.
The media also play a role in increasing the sense of insecurity. There is lots of talk about manipulation of currencies, the gold price and interest rates like Libor.
Mismanagement, manipulation, disinformation and even cheating, who or what can still be trusted?
Verifin aims to be a reliable guide through this challenging financial landscape.
Since the financial crisis of 2008, markets got used to very low interest rates, as set by the different central banks world-wide. The Covid-sanitary crisis has even lengthened this expository phase further. But the war in Ukraine has proven to be the turning point, both geopolitically as well as for the financial markets. With inflation rampant, central banks were forced into action and increased borrowing rates quickly. This has had a profound negative impact on markets, obviously on bonds and equities but also on real-estate assets and even crypto’s.
The accommodating monetary policies, will have to be rolled back further over the coming period. The volatile political climate as well as trade tensions are scaring investors. Reputable banks have gone belly up in the recent past. This has eroded the notion of banks as safe havens, also because current interest rates are mostly below the level of inflation. The Euro is no longer under immediate attack but tensions are rising within the union, especially between Eastern and Western countries. Politicians do not appear to have a solution on how to solve the problems at hand and often just panic. Global financial markets suffer as a consequence.
The media also play a role in increasing the sense of insecurity. There is lots of talk about manipulation of currencies, the gold price and interest rates like Libor.
Mismanagement, manipulation, disinformation and even cheating, who or what can still be trusted?
Verifin aims to be a reliable guide through this challenging financial landscape.
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missionVerifin aims to be a reliable guide through the challenging financial landscape. |
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