Sierra White Paper: Global Monetary Policy Issues



Sierra Investment Management's Frank Barbera recently published a white paper focusing on global monetary policy. He notes that in the past, global central bank policies of money printing usually led to inflation.

However, according to Mr. Barbera:

"…this cycle seems to have very different characteristics that could delay normal inflationary outcomes for an extended period of time. When we view the effectiveness of quantitative easing here in the United States, it is very clear that with each successive round of additional QE by the Fed, the overall impact on capital markets seems to yield steadily diminishing returns."

The piece goes on to ask:

• Is monetary policy is becoming more impotent by the week?
• Is market reliance on the Bernanke and Draghi “put” forging the false hope for this cycle?
• Is this  leading investors to ignore sharp deterioration in underlying fundamentals?


To read the piece in its entirety http://www.geminifund.com/ClientSites/SierraMutualFunds/%28S%28t4a4or12bdzb0gbqulnsqgol%29%29/prior-trends-menu.aspx

Access the piece under "Monetary Policies."