Fernando Rodríguez | “Traditionally, the major correlation in stock markets has been between actual or expected corporate earnings and prices. Right now, for several years, the most direct correlation has been between the stock price of an index and the balance sheet of its respective central (…). Today the market is discounting that there is no limit to this race and futures are assuming a zero rates until 2030. I believe this has a limit and is not what the market thinks about,” explains Juan Carlos Ureta, Chairman of Renta 4.
What really shocked the markets was not the Fed’s decision to maintain zero interest rates for a few more months, but the statement that accompanied it.