October 2019

Modern Portfolio Theory, RIP

Drummond Brodeur's picture
For investors, the biggest shift over the past quarter was the definitive return by global central banks to easing mode as the U.S. Federal Reserve (Fed) cut its target interest rate for the first time in over a decade, while the European Central Bank (ECB) cut rates to -0.5% and restarted its quantitative easing (QE) program. For now, the highs in interest rates are behind us and we expect them to keep heading lower through 2020. For savers and risk-averse investors this is a massive headache.