The Emperor´s New Clothes

BY FERNANDO DE FRUTOS, CFA, PhD  |  6 APRIL 2023       For more than a decade, central banks have been unable to raise rates, due to chronic subpar economic growth and high unemployment. With rates near the zero-bound, a mistake from overtightening could have been very costly to reverse. While central banks always … Continued

Fasten your seatbelts

BY FERNANDO DE FRUTOS, CFA, PhD  |  17 JANUARY 2023   The last three years have been completely abnormal. Today’s inflation is a byproduct of the pandemic, just as high interest rates are. The disappointing returns last year, like the exceptional two years prior, must also be seen in the same context. Sooner or later … Continued