Federal Reserve’s easy money policies to boost equities until mid-2021

In one of those “well, duh” stories, a new forecast predicted that the Federal Reserve’s easy money mechanisms will drive the equity markets until the middle of next year.

According to Max Life Insurance, India’s largest non-bank private life insurance company, equities markets will continue to surge until mid-2021, thanks to ultra-low interest rates and unlimited liquidity injections.

Meanwhile, the company anticipates that gold would rise above $2,200 per ounce next year. Real estate would also perform rather well as we the world says goodbye to 2020.

What about the U.S. dollar? While the group has yet to see hyperinflation, “it has manifested in asset inflation.”

The comments were made at the Reuters Global Markets Forum. Max Life Insurance manages about $9 billion in assets.

As long as the Federal Reserve prints money, the financial markets will do well. Remember, the new mandate for the Fed and other central banks is to prevent another market meltdown as we saw in March.

Thanks, Jerome Powell!