Let's Face It: Central Bankers Are Losing Control Of Equity Markets

Once upon a time, the OPEC cartel had firm control of the oil market. We all know how that happened – by cutting output to forestall price declines.

But two years ago, OPEC lost that control. American frackers changed the rules of the game in the oil market, making OPEC irrelevant.

And now, a growing antagonism between Saudi Arabia and Iran threatens to break the OPEC cartel altogether.

Six years ago, central bankers assumed control of equity markets. We all know how that happened, too – through Quantitative Easing (QE), an unconventional monetary policy that drives long-term interest rates lower, steering investors into equities. That’s how equity markets around the world recovered nicely from the 2008-9 financial crisis, some reaching all-time highs.

Now, central markets are losing control of equity markets, as the QE has created a disconnect between financial markets and the real global economy, which is gasping for growth.

http://www.forbes.com/sites/panosmourdoukoutas/2016/01/15/lets-face-it-central-bankers-are-losing-control-of-equity-markets/?utm_campaign=yahootix&partner=yahootix#2715e4857a0b220270d96e79