Paul Moore, CIO of PM Capital, says in his opinion the injection of QE in Europe was a waste of time. “You are better off focusing on structural reform and government policy. I think the reason QE has been so extreme is because the structural reform has been lagging. In the end what is happening with a lot of this liquidity is it is sitting on bank balance sheets doing nothing.”
Moore believes central bank intervention creates an environment of conservatism in companies which is currently delaying investment activity in the economy. Moore says the distortions in interest rates as a result of QE has made it difficult to assess the right differential between bonds and equities. In this short video he explains how he is putting equity returns in perspective.
Insight by Paul Moore, CIO, PM Capital. Intelligent Investor has partnered with Livewire Markets to deliver you more market insights from industry insiders.
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