“The search for yield is pushing people for dividend yielding stocks”, says Michael Hunter, Market Reporter for FT, as he speaks on the uncertainty in the global markets, helicopter money, and the root of all problems ‘NIRP’, joined by Jenny Hammond, and Zak Mir, today’s hosts for the Tip TV Finance Show.
Hunter notes yesterday’s movement in the EUR/USD after the ECB rate decision, and says that the movement in the single currency was a sign of markets collective wisdom, wherein they are looking for signs for prospects of Draghi injecting the central bank money in private companies.
Adding to the QE scenario, Hunter highlights that the ammunition locker of central banks is looking bad, which is the major reason behind the volatility in the markets.
When quizzed about what’s happening in the markets, Hunter believes that the stock market stands supported due to central bank policy, and the QE. The negative rate scenario is a major worry for the financial sector, as people throng the markets in search of yield. Hunter further adds that this scenario might lead the financial sectors to take a leg lower when the markets realize what is happening.
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