Finance & Fury Podcast

Welcome to Finance and Fury Passive Investing is the Flavour of the day – Central banks entered the markets to provide a feedback loop Central banks Trying to create the wealth effect - Bernanke’s easy money policy was intended to boost economic growth by boosting shares as well - November 2010 he argued: “Higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion.” Think of a financial market as a forest – Aus seen some fires recently – arson can be a cause – but if the Greens won’t let burn offs, then throw fertilizers around and forests grow out of control – enter a dry period – small spark leads to massive fire that can destroy everything in its path – Tell-tale sign - lower volatility and the unprecedented magnitude of Central Banks’ interference in markets Peak Quantitative Easing - never before this high: $300bn+ monthly asset p