The monetary backdrop for markets has become less favourable, while a pick-up in US money growth suggests rising medium-term inflation risks. Continue reading
Author
Simon Ward is Economist / Strategist at NS Partners and an Economic Adviser to Janus Henderson.
Forecasting Process
Real (inflation-adjusted) money leads economic activity. Nominal money leads prices / inflation. "Excess" money drives markets. Economic fluctuations reflect the interaction of three investment cycles (stockbuilding, business capex, housing). More here.