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Flash Report June 2020

Another great month for stocks, credit, and gold as markets bet heavily on the central banks. Progress reducing Covid-19 outbreaks also helped boost stock prices, especially in Europe. The real action, however, stemmed from the dawning realization that central banks will flood the world with liquidity, repress nominal and real sovereign and corporate yields across maturities, and flatten risk premiums until policy makers secure the economic growth and inflation they desperately seek. In a nutshell: growth, reflation, or bust!

WRITTEN BY | July 1, 2020

 

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