Markets are suffering from 'blind faith' in central bankers

'Normal' financial markets are unpredictable, so this 'blind faith' in central banks is odd, argues Paul Stephany, portfolio manager at Newton Investment Management.

These are fascinating times we live in. Markets have had a strong start to 2015 as hopes for, and now delivery of, quantitative easing in the eurozone has encouraged investors to be optimistic. The pages of this, and many other publications, have been full of portfolio managers justifying bullish outlooks on the likely actions of European Central Bank president Mario Draghi. To my mind, an appropriate metaphor for 'normal' financial markets is the unpredictability of a pool break, not this blind faith in central bankers we see today.   'Believer' mode Optimism is certainly back...