The S&P 500 is pretty close to the year end price target set by JP Morgan, said Steven Rees, Global Head of Equity Strategy at JP Morgan Private Bank. JP Morgan is advising clients to add some protection and to sell some of their exposures, and watch out for dividend strategies. Since the Fed is going to be hiking slower …
One Man’s Opinion: Has The European Central Bank Failed To Boost Economic Growth In The EU?
Central banks around the world, especially the European Central Bank (ECB), have done a pretty good job of preventing the downside, but they really have not kicked up the upside with respect to economic growth, said John Silvia, chief economist at Wells Fargo Securities. Both growth and inflation expectations have been lower over time. There have been contradictions in the …
One Man’s Opinion: Can US Credit Markets Provide Equity-Like Returns With Less Volatility?
There’s a lot of uncertainty right now with what’s happening with Clinton and Trump and who the Republican nominee would be, which is going to play out over time, said Mark Kiesel, Chief Investment Officer – Global Credit at PIMCO. Right now PIMCO is focused on big opportunities in the credit market where it sees equity returns with lot less …
One Man’s Opinion: Does A Strong Labor Market In The US Mitigate Recession Risks?
Recessionary fears in the US are a little overworked, said Doug Gordon, Senior Portfolio Manager for Tactical Asset Allocation Strategies at Russell Investments. Recessionary fears were justified may be two months ago, but the strength of the US labor market including the strong payroll gains in the past three months and comparatively lower weekly unemployment claims numbers indicate resilience. To …
One Man’s Opinion: Does The Market Indicate There’s A US Growth Problem?
The overall pessimism about the US economy has not subsided as nominal GDP growth has been less than three percent, Q4-over-Q4 , and in that kind of world, corporate profits don’t grow very much, said Joe Lavorgna, chief US economist at Deutsche Bank. People are focused on the labor market, which is a backward looking indicator; companies hired people, but …
One Man’s Opinion: Should Investors Remain Defensive Right Now?
Federal Reserve chief Janet Yellen could have said more and should have said more during her Senate testimony, and she left the impression that she and the Fed are not in touch with the mother ship, said Robert Michele, head of fixed-income, currencies and commodities at JP Morgan. Inflation expectations seem to be least of the Fed’s worries; a serious …