QE

CONTRARIAN

An ultra-bearish US hedge fund manager shorted gold a year ago, when it was still in favour with most investors, and thinks the price of the metal is on track for a multi-year drop.

Rathbones' head of multi-asset investments is hedging portfolios against a market fall as the US recovery looks set to bring an end to quantitative easing.

Japanese equity managers are betting on the domestic consumption theme following the Bank of Japan's aggressive move earlier this month to avert deflation and stimulate the flagging economy.

CONTRARIAN

Global markets soared on Wednesday after the US Federal Reserve inadvertently released minutes from its latest policy meeting five hours earlier than planned.

The Bank of England has opted not to implement further quantitative easing and held interest rates at 0.5% for the 49th consecutive month.

It is hard not to feel ever so slightly sorry for the pointy heads over at the Bank of England as they contemplate what to do next about the various quantitative easing programmes, including the Funding for Lending scheme.

The Bank of England voted 6-3 against more quantitative easing this month, saying a further round of purchases could cause an "unwarranted depreciation in sterling".

Ariel Bezalel has been adding gold mining debt to the £1.5bn Jupiter Strategic Bond fund, in expectation the gold spot price could hit as much as $3,000 per troy ounce in the next 12-24 months.