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By Norman VILLAMIN, Group Chief Strategist, Union Bancaire Privée (UBP)
The global rally in equities since the lows of October 2022 have widely been attributed to China’s post-COVID re-opening, Europe’s success in skirting an energy crisis over the winter, and more recently, signs that the US Federal Reserve might be set to pause its now more than year-long interest rate hiking regime.
Though all of these factors have undoubtedly contributed to the growing risk appetite that has driven the nearly 12% rise in global equities since late 2022, the foundation of the rally was the surge in global central bank liquidity begun in November 2022. Recall, in the first nine months of 2022, while Fed rate hikes and the war in Ukraine captured headlines,...
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