The Federal Reserve is likely to raise interest rates in June 2015 as economic data has been pretty soft in the last few weeks, said David Joy, chief market strategist at Ameriprise Financial. However, eventually, markets are likely to witness a 10 percent correction in anticipation of a rate hike, possibly by the end of the year, David added. Latest …
One Man’s Opinion: Will US Economic Growth Exceed 2 Percent This Year?
US bonds and stocks have been moving in tandem for some time now, indicating the new reality in price correlation, said Jim Bianco, President and Founder of Bianco Research. Historically, bond and stock correlations have never been stable over a period of decades; they go back and forth depending upon whether markets are worried about inflation or deflation. In the …
One Man’s Opinion: Will The ECB’s Surprise Interest Rate Cuts Be Followed By QE?
European Central Bank President Mario Draghi surprised markets by announcing cuts in all the three main interest rates after inflation weakened further to a 0.3 percent annual rate in the euro area. A full-fledged quantitative easing might be unveiled after starting off with asset-backed securities – what Draghi calls “simple transparent ones,” said Kit Juckes, Global Strategist at Societe Generale. …
One Man’s Opinion: Will the European Central Banks Initiate QE?
Latest data from he European Union showed annual inflation rate in the euro-zone slowed further to 0.3 percent in July from 0.4 percent in the prior month. A combination of two factors –low import prices, which is a legacy of a stronger euro, and low food prices are pushing the euro-area into the low inflation regime, said Paul Donovan, Managing …
One Man’s Opinion: Will The European Central Bank Bail Out France?
Russian equities have witnessed heightened volatility in recent times, shedding 20 percent and then recouping losses to trade 20 percent higher than recent lows. Even after three rounds of sanctions, the Russian market has been surprisingly resilient, said Stephen Isaacs, Chairman of Investment Committee at Alvine Capital Ltd, London. Also, the time to generally buy in emerging markets is when …
One Man’s Opinion: Are Emerging Markets In Europe And Asia Looking Attractive?
Investors need to look at the balance between the current uncertainty and the opportunity amidst heightened geopolitical risks, said Brain Jacobsen, Chief Portfolio Strategist at the Wells Fargo Advantage Funds. It’s all about knowing the risks that are out there and whether investors are being compensated for them. A lot of current risks are being driven by the situation between …