Investors would be making a mistake if they map the ongoing commodity weakness into a general global slowdown which would impact the US as well, said Scott Mather, CIO at PIMCO. Investors should not forget the reduction in commodity prices is a good thing for US growth and most developed world consumer of commodities. So if anything, it’s a boost …
One Man’s Opionion: Will The Fed Delay The Rate Hike To Avoid Importing Deflation From China?
The recent devaluation of the Chinese Yuan is a reason for worry because it’s a huge event, said Joachim Fels, global economic advisor at PIMCO. Two major economies, the US and China were willing to let their currencies appreciate, which allowed the rest of the world to export their deflation. Since China just decided to jump ship, Beijing’s own deflationary …
One Man’s Opinion: Will Volatility Remain Elevated In The Near Future?
While many investors may have lost their annual gains in equities due to the recent slide, there are others who have built high cash positions, said Kristina Hooper of Alliance Global Investors. Allianz expects heightened volatility with a downward bias in the coming weeks and investors with a long enough time horizon should hang around because markets are likely to …
One Man’s Opinion: Is The Current Recovery Driven By Leverage?
Investors were focused on stocks outside the US last year and it’s very refreshing to see that balance to come back, said Richard Madigan, chief investment officer at JP Morgan Private Bank. While investors can always look at Europe, Japan and some parts of Asia, they are over-thinking about growth in America. Growth in the US is slow and dynamic, …
One Man’s Opinion: Will The Financial Sector Perform Well Once Rates Rise?
The US economy has been growing at around 2-2.5 percent for a couple of years now while the business cycle has remained nearly flat, said Rob Morgan, chief investment officer at Sethi Financial Group. While the economy grinds along, among asset classes, equities are likely to do well though P/E multiples are on the higher side, and some stocks are …
One Man’s Opinion: Do Downside Risks To The Economy Still Exist?
The latest retail sales reading that showed June sales (excluding automobiles) slipped 0.1 percent doesn’t suggest the US economy has turned a corner and the economy would be able to sustain a hike in interest rates, said Austan Goolsbee of the Chicago Booth School of Business. While global events such as the turmoil in Greece and the meltdown of Chinese …