Wednesday, June 1, 2011

British Equity Analyst Simon Maughn Says Bond Markets Are Telling Us "QE3 Is Coming"


Simon Maughn, co-head of European equities at MF Global, speaking on CNBC's European Squawk Box show June 1, says investors should prepare themselves for a third round of quantitative easing.

He says that decline in the equity values suggest this market does not anticipate the advent of QE3. "It's all about the monetary injection trade," he says of the sell-off of equities in advance of QE2. "The equities are calling up a post-QE2 trade."

While the equities markets do not know if we are going to have Q3, the bond markets are clearly expecting a QE3, he said.

On the Greek crisis, Maughn says, "Most informed opinion will tell you that a Greek default is inevitable."

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