El-Erian in the FT: Markets reflect.....>

MARKET TALK: El-Erian in the FT: Markets reflect too much confidence in US-China

trade deal (FT)

- The more it changes, the more it remains the same. Markets and central banks

have been stuck in an unhealthy co-dependence since the global financial crisis.

Spoiled by too many years of timely and significant liquidity support from

central banks, investors have long transitioned away from their traditional role

of pressing for favourable policy changes - their longstanding role of

"vigilantes" - to happily backing policies that have narrow chances of

delivering durable economic improvements. While the market is evolving away from

a sole reliance on monetary policy, the relationship that is replacing it calls

for greater longer-term caution than many investors seem willing to embrace.

- Link: https://www.ft.com/content/bfea35c6-cfc1-11e9-99a4-b5ded7a7fe3f