Economists have seen this all before as fundamentals deteriorate, central banks act. It happened in third quarter 2012. With earnings growth expectations negative, the Federal Reserve stepped in with a third round of quantitative easing supplemented by Operation Twist for an unprecedented $1 trillion of stimulus per year. U.S. markets opened 2013 strong and never looked back. And now it's happening across the globe. The Fed set the tone by holding steady on rates following both its September and October meetings, and the European Central Bank declared its intention to stimulate big. But it was the People's Bank of China that upped the ante with two significant rate cuts in recent weeks, sparking a surge in global markets.
"This central bank-hosted party is most definitely not a celebration of economic prosperity; inflation, GDP and corporate profit expectations continue to be cut by Wall Street analysts, the International Monetary Fund and the World Trade Organization. Should the old adage "don't fight the Fed" be expanded to "don't fight the global central banks"? It sure looks that way given the latest explosive equity rally in the face of slowing global growth", says Voya Global.


BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Best Gold Stocks to Buy Now: AABB, GOLD, GDX
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 



