Former CIO of Singapore's sovereign wealth fund: If risk assets fall sharply, the Fed may implement quantitative easing
Jeffrey Jaensubhakij, former Group Chief Investment Officer of the Singapore government investment company (GIC), said that if risk assets such as US stocks collapse, the Federal Reserve may take quantitative easing (QE) measures. Jaensubhakij said, "If they are indeed in a bubble state, and they break - will the Federal Reserve really implement an index-level enhanced version of quantitative easing? I think the likelihood of this happening is high," which will provide a cushion for commodities. "In the coming months, the market will increasingly realize that significant volatility is on the horizon, as such a state cannot be sustained," he said. Jaensubhakij stated that investors need to consider whether they can achieve the same return from artificial intelligence bets as capital expenditures increase, and how to finance these expenditures. More broadly, he warned that rate cuts are "providing nutrients to the market."
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