Harbour Monthly Commentary: In a more normal world?

In the last month 8 months we have highlighted that:

• Central banks are very focussed on getting an acceleration in economic growth – in contrast to the normal central bank focus on inflation and price control. Central bank’s are not behaving in a normal world, in fact a return to normal – the so called exit strategy – may pose risks to markets

• Interest rates are going to stay low for longer – this is not a normal world

• On the other hand we have seen a pronounced fall in both implied volatilities and economic uncertainty, which in part reflects a return to normal, and as a result