Above all, do not believe that monetary policies will become restrictive

To varying degrees, the Federal Reserve, the ECB and the Bank of England are exiting their ultra-expansionary monetary policies. But above all, one should not believe that they will switch to restrictive monetary policies. In reality, monetary policy will no longer be ultra-expansionary, but it will still be expansionary, as was the case in 2018-2019 and for the same reasons. Like in 2018-2019, the combination of an economy in rude health and an expansionary monetary policy will boost asset prices. So one should not be swayed by politically-motivated fanfare from central banks about exiting their ultra-expansionary policies. Monetary and financial conditions will remain highly favourable.