The US economy is doing about 2.5 percent real growth and 4.5 percent nominal growth with the labor market tightening pretty dramatically, said Mark Kiesel, Global Head of Corporate Bond Portfolio Management at PIMCO. The decline in domestic inflation is transitory and PIMCO agrees with Fed Chair Janet Yellen that US inflation is headed towards the 2 percent target. In …
One Man’s Opinion: Will Higher Home Prices Drive US Inflation?
Market observers would not expect the Federal Reserve to raise rates in October or December this year because historically the US central bank has been sensitive to international concerns, said Bill Smead, CEO and CIO of Smead Capital Management. Many times in the past the Fed has been sensitive to what has been going in Asia or Latin America, and …
One Man’s Opinion: Will Developments In The Labor Market Trigger A Rate Hike?
The short-term interest rates were kept unchanged on Thursday because historically, the US Federal Reserve has been a very conservative organization, said Gary Stern, former President of Minneapolis Federal Reserve. While the markets are witnessing a volatile situation, economic conditions abroad have been deteriorating, and the Fed failed to achieve its inflation target. Amid such a scenario, it’s pretty easy …
One Man’s Opinion: Will US Equity Markets See Further Drops In The Short Term?
The stock markets in the US clearly show elevated volatility as the swings have now extended into the third week, said Jonathan Corpina of Meridian Equity Partners. One of the most important things that investors need to learn is to live with is the heightened uncertainty and volatility because this is the “new normal.” Economic growth has not been very …
One Man’s Opinion: Will Reallocation To US Equities From Europe And Asia Drive Valuations?
The S&P 500 index is likely to hit 2250 by the end of the year though it may seem too bullish right now, said Julian Emanuel, US equity and derivatives strategist at UBS. There has not been a bear market in the past 25 years without a recession and the economy is simply too strong now whether it is jobs, …
One Man’s Opinion: Is The Time Ripe To Bottom-Fish Or Re-Enter The Equity Markets?
The latest rebound in US equities is probably too early to do a victory lap though there’s no denying that valuations have improved pretty dramatically in the last couple of weeks, said David Lafferty, Chief Market Strategist at Natixis Global Asset Management. With the S&P 500 trading at about 18 times forward earnings and the Dow at about 16.5/17 times, …