The Central Bank continues to dominate the economy of not just the US but globally, said Eric Wiegand, portfolio manager at US Bank. (There has been) a break from the trajectory that was witnessed previously; at least the US has the certainty of one rate-hike behind it. The debate over the number of increases as the economy moves through 2016 …
One Man’s Opinion: Will Junk Bond Defaults Go Up If Oil Remains At Current Levels?
The US economy would certainly not witness a 2008-style recession despite the recent sell-out in the junk-bond market, said Jeffery Gundlach, co-founder and CEO of DoubleLine Capital. The crises that started in 2008 are rare and seldom repeat themselves. It was probably and hopefully an once-in-a-lifetime event. Nevertheless, the condition in the junk-bond market is disconcerting though, but it’s really …
One Man’s Opinion: Will A Sudden Jump In Wage Growth Trigger Faster Rate Hikes?
The US economy is likely going to be in the backdrop of a flatter yield curve for quite some time because the Fed is going to be raising rates, but they are going to be telling the markets that their end game is probably much lower than where they thought it was, said Ellen Zentner of Morgan Stanley. A lot …
One Man’s Opinion: Will A Fed Rate Hike Be Positive For Equities?
At the upcoming December 15-16 FOMC meeting, Fed Chair Janet Yellen is likely to reiterate what she said at the Congressional testimony which is that the economy is expanding at a moderate pace and they made significant improvement in terms of reaching full-employment, said Michelle Meyer, deputy head of US economics at Bank of America Merrill Lynch. Inflation is so …
One Man’s Opinion: Do Corporate Profits Reflect The Split In US Economic Activity?
The recent stream of data indicates everything is good enough for the Fed to proceed as planned with a rate-hike in December, said Michael Gapen, Chief US Economist. Although the latest inflation report came in softer than many had expected, it was no surprise; again that was just further softness in core goods prices, being weighed down by a stronger …
One Man’s Opinion: Will A Stronger Dollar And Higher Interest Rates Trigger A Correction In US Equities?
Investors may not have realized but something interesting happened in the third quarter of 2015; corporate earnings declined year-over-year in the July-September quarter for the first time since July 2009. While one quarter doesn’t show a trend, earnings quality going forward doesn’t certainly look good, said Larry McDonald of Societe Generale. Financial engineering by S&P 500 companies have been stretched …