Recent months witnessed three key central bankers; #Powell, #Draghi and #Kuroda set off a renewed policy easing cycle, as various global growth risks have resulted in rates and spreads today close to post-crisis lows.
From an #investment standpoint, this creates further #yieldscarcity, as any reasonable yielding asset now faces tremendous demand and a more limited relative available supply.
Still, though it presents some added challenges for #investors seeking yield, or those attempting to match long-term liabilities, this policy easing is justified by the #economic weakening seen across the globe.
Nevertheless, despite global weakening, the U.S. #consumer and #services sectors appear to be holding up decently for now, as household net worth ground $1.8 trillion higher in Q2, on the back of gains in house prices and equities valuations, after a $5.3 trillion gain in Q1.
Also, there are areas of the #economy that are highly sensitive to, and benefitted by, this lower interest-rate regime: #housing chief among them. That fact was on display recently, with new home sales spiking 7% higher in August and previous months also revised higher.
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