Coverage Universe - Weekly Price Change: Sept 20-27, 2019

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The 'lower for longer' outlook for interest rates is proving positive for markets, this was the expected outcome. 'How much longer' can have a dramatic impact on values.

Fears of rising interest rates rising have dissipated, markets have also accepted central banks will not be lowering rates either. Markets are letting go of the 40 year preoccupation that central banks will always be at the ready to cut rates and and central bankers are accepted that deflation is just as likely as inflation.

The fuel for markets move higher since mid Dec-2018 is the realization that interest rates could remain at current levels for an extended period. The possible length of the extended period is now one of the biggest factors influencing the outlook. Comments this week cover changes for interest rates, currencies and the major market indices over the past approximately one year. The approximate one year time frame is used to factor in when the major trends changed as opposed to an arbitrary exact one year time frame. This may only be the beginning for a longer term uptrend for markets. The fuel that declining interest rates provided for markets is being replaced by rates remaining stable

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