By Krishna Memani, Vice Chairman of Investments
The Fed's pivot to easier policy likely extends the current business cycle
As the global equity markets rebounded from their December 2018 lows, we have all heard the constant refrain: Bad news being good news can't last, the day of reckoning is coming.
That is, an equity rally built on the Federal Reserve's pivot to easier policy is not sustainable. At some point, slowing economic growth will overwhelm the low interest rate policy and jumpstart an equity market correction.
While at first blush this may make logical