In the aftermath of the last financial crisis a new motto has emerged among investors, they love and got addicted to cheap and easy money. So every time a central bank, namely the big ones, ECB and specially the FED had gone dovish, Wall Street cheered big time.
In that regard, this week, markets got a double and early Christmas gift, first Jerome Powell opened the door to a new cycle of rate cuts, which investors are already betting it will be as much as three this year. Then it was Mario Draghi, mr. dovish, who delayed a rate increase by six months and hinted at the same time, that some easing might come along. The million dollar question now is, so far its a Bulls party in Wall Street, but at what cost in the future?