The markets' artificial high will wear off

World governments' stimulus measures were a massive a boon to asset markets in 2009. The big question now is what will happen as the money is gradually withdrawn.

In 2009, markets ran on "steroids", says Jeremy Warner in The Daily Telegraph. The MSCI World index of developed market equities is up by more than 70% from its March low. The S&P 500 gained 65% from its low and finished the year 23% ahead overall.

Central banks and governments have cut interest rates to zero. They've also committed around $30trn in printed money, debt guarantees and fiscal stimulus packages to alleviate the impact of the credit bust, says Sddeutsche Zeitung, racking up huge public debts in the process. The unprecedented liquidity has been a boon to asset markets. The big question for 2010 is how economies and markets will fare as the money is gradually withdrawn.

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