I perfectly agree with Russell Napier that the future performance of stocks may have more in common with a period between 1966 and 1982 rather than the 20 years’ after the war /FT, 24 July 2020/.
On my part, I also agree with his piece of advice that investors should hold as much gold and as little government debt as they feel comfortable with.
It means, however, that central banks are destined to hold more government bonds than they feel really comfortable with.
In the 2000s the banking system played the main role in finance globally, in the 2010s leading central banks proved to be the only game in town and time has come for governments to step in throughout the 2020s.
Nevertheless, they need the helping hands of central bankers.
Together, they are the main driving force in finance, with one possible caveat: watch fintech and information technology companies. The storm of financial innovations is here now.
Governor Matolcsy, MNB, the Central Bank of Hungary
