Pandering to the Base?

Theresa May's attack on QE has caused some consternation yet should we be surprised by this action? Perhaps we should consider the questioning of the program and the role of the Bank of England as a sign that our new Prime Minister knows which way her bread is buttered.... Following on from a week where May confirmed a hard BREXIT, much to the lament of 47% of the electorate, is the above merely further pandering to her base? Many Leavers are still scornful of Mark Carney's interventions before the BREXIT vote. They are also much more likely to be against QE policies, typically being savers.

We will be watching the news with some fascination. Our investment thesis in terms of equity markets has been that they thrive on bad economic news since bad news means more QE. Political intervention into monetary policy will throw this assumption into disarray.

Those record high equity levels are now looking mightily vulnerable all of a sudden!