Relax, we’re not heading for a stockmarket crash

The market sell-off has reinforced the view that central banks' money-printing and interest-rate cutting is an experiment that can only end in tears. But that’s not so, says Matthew Lynn.

882_MW_P12_City-View

Investors should cheer up markets are less pricey than they seem
(Image credit: 2018 Getty Images)

It has been close on a decade since the global financial crisis. Investors have viewed the subsequent experiments in printing money and slashing interest rates down close to zero that followed afterwards as an aberration and one that is bound to end in tears. Indeed, this week's sharp sell-off in the markets will be taken by many as the first sign that they were right. But hold on. What if interest rates are not that low after all?

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.