God bless those central bankers and their cheap money!

That’s what some have been saying for many years now since the beginning of quantitative easing policies in the United States and at other central banks around the world.

Those cheap money/central banker policies were discussed on Thursday at a Deutsche Bank Wealth Management conference in Manhattan.

The Federal Reserve will continue to succeed in 2020 and the stock market will continue to prosper, but at a slower rate than in previous years.

That’s the nub of a new report from Deutsche Bank Wealth Management entitled “Outlook 2020: The End of Monetary Magic?”

The report said the “magic” would continue. However, it said the recession risk will slightly rise from its 2019 level.

Last year was a “banner year” for almost all asset classes and central banks “when it comes to asset inflation,” and the central banks are “having the biggest say in the markets,” according to Deepak Puri, chief investment officer for the Americas at Deutsche Bank Wealth Management.

He added that central banks can’t solve all the “structural problems” of economies, but their actions have inspired consumer and investor confidence.

The report’s projections assume that the Federal Reserve will pause on aggressive cutting. “Our thesis is no rate cuts for the next 12 months,” Puri said.

He cautioned that governments over the long term should not over rely on central banks to fix basic economic problems. However, in the short term, markets were prospering last year and should continue to do so in the next year, he said.

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