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This morning on the Tip TV Finance Show Clem Chambers, Founder of ADVFN, joined Nick Batsford to discuss how central banks are influencing the stock market, as well as views on the Euro and the inflation/deflation debate.

Risk on sees the Euro fall heavily

Chambers noted that the Euro has to go down, and believed this as in times of trouble investors run to the Euro as a safe haven like the USD, thus he concluded that the Euro will fall in this risk-on market.

Are central banks bailing out the stock markets?

Chambers continued onto central banks, where he commented that they are rescuing the stock market, as seen clearly in China, as well as by the Federal Reserve in the US and the Bank of Japan. He added that the dynamic is central banks use the stock market and the housing market as a transition mechanism in order to get QE into the general market, thus both the stock market and the housing market will be protected by central banks.

Inflation or Deflation

The risk of deflation is nonsense, argued Chambers, who concluded his interview by noting that inflation is measured with a different market of goods than it was 30 years ago, and that he can see inflation in food prices.