Enjoy That 29% Rally? You Have These Folks to Thank

For all the fears that central banks are out of ammunition, looser monetary policy over the past year provided a vital safety net that enabled stocks to surge and wiped out fears of recession. As 2020 unfolds, expect more easing.

The year is barely a week old and already we have some indication about how things will unfold. In minutes released Friday, the Federal Reserve left little doubt that policymakers are more likely to cut than raise rates over the next several months: Inflation is still too low. Two days earlier, the People’s Bank of China reduced the amount lenders must keep in reserve and signaled further steps to lower borrowing costs for companies. Bank of Korea Governor Lee Ju-yeol predicted another year of sub-par growth while Singapore’s gross domestic product for 2019 rose at the slowest pace in a decade, the government said Thursday.