I repeat: As long as global cental banks keep stimulating the economy, there will be no investments. On one hand crowding out private investments, on the other hand they seed and signal insecurity. The state of the global economy more and more resembles a Potemkin Village where the central banks hold up the scenery.
The situation is rotten.
Central banks don’t allow the real economy to go through recessions. There are no more cleansing thunderstorms anymore. Actually: Somebody should finally tell the people the truth.
Rotten structures are being kept alive at a very high cost. An unprecedented experiment just keeps going without any prove of effect. So why isn’t anybody standing up against this? I guess, everybody just keeps hoping that everything will be fine in the end – without any pain or sacrifices. I don’t believe that’s going to happen. But as the normal “John Doe” I don’t have any other choice than just to play my role in the Pontemkin Village and hope that I’ll be among the first to spot when the curtain falls.
What should investors do? Well – watch the central banks closely and stay flexible. Be the first to leave the party once central banks decide that there is no more booze. Invest in assets that are of good quality and trade in markets with high liquidity.