Can central bankers keep the party going in 2015?

Equity markets have generated much lower returns since the turn of the Millennium than those investors had become accustomed to prior to the year 2000. Initially high valuation, based on the hope of the ‘TMT’ boom, challenged prospective returns. By 2007, exuberance had transformed into the belief of an earnings ‘boom without bust’ as demand persistently outstripped expectations. Now equity indices rest heavily on the belief that central bankers are able, and will act, to do ‘whatever it takes’ to sustain high asset prices.  Could 2015 prove to be a year where actively choosing to do something different from market indices pays dividends for investors?

Peter Hensman, Newton 

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