QE and Spread Betting
In financial spread betting with interest rates remaining low and stocks are better. Bonds aren’t giving a huge return in financial spread betting although some are because of the risk of default and that’s of course a risk, that’s something to bear in mind.
I think as spread betting interest rates are to rise, because we see a small increase in the some of the rates this week, that could be one of the fundamental turning points to come. Because the QE is fueling inflation, governments want inflation because it knocks down the liability which is sort of comfortable hanging over the entire economy, our world economy really.
They can devalue their currencies and therefore, devalue all this debt. That’s the basic game plan, it’s all they’ve got really and it’s not boosting the economy and that’s where, I think, things are going to go south.You should remember about this when you are involved into financial spread betting.