The rise in geopolitical tensions in recent weeks that triggered a stock market slump in the US validated Ameriprise Financial’s Chief Market Strategist David Joy’s call in June for offloading equities. While equities are likely to be punished further as markets are probably halfway through the latest move, there is an opportunity for a relief rally if the news in …
One Man’s Opinion: Will The Fed Change Its Course After The Latest Nonfarm Payroll Report?
The July payroll report showed the economy added 209,000 jobs for the month. A number that close to economists’ forecast of a 230,000 jobs gain indicates it is in-line with expectations and the street shouldn’t really be disappointed, particularly as job gains for May were revised upwards to 298,000. However, the lack of growth in the average earnings-hour is a …
Pesky International Conflicts Push Markets Lower
[Chart courtesy of MarketWatch.com] 1. Moving the Markets Stocks trended lower throughout the morning, but losses accelerated late in the day and the major indexes closed lower. Investors seemed to be torn between a batch of mostly positive earnings reports and rising global tensions. The S&P 500 ended below its 14-day moving average for a second straight day, and 9 …
One Man’s Opinion: Are Europe, Asia And Emerging Market Equity Prices Relatively Cheap?
Economic or earnings growth has mostly remained insulated from the ongoing global unrest and as such, should have little significance for the global economy, according to Russ Koesterich, chief investment strategist at BlackRock Inc. There are a number of reasons why investors chose to ignore geopolitical risks. First, central bank policies kept volatilities really low. Second, people have been conditioned …
One Man’s Opinion: Will The European Central Bank Be Forced Into QE Next Year?
The European Central Bank is likely to include in their Stress Test the money that commercial banks have raised and the fines they have incurred, said Erik Britton, director at Fathom Consulting. The eurozone final inflation reading for June came in at 0.5 percent, matching an initial estimate. Asked if investors should take heart since price levels are not falling, …
One Man’s Opinion: Is The Federal Reserve Likely To Defer Rate Hikes Since Inflation Has Remained Weak?
The recent turmoil in the markets caused by Portuguese lender Banco Espirito Santo almost looked like a mini panic as a lot of investors jumped the gun assuming another credit crisis has hit Europe, said Brian Jacobsen, Chief Portfolio Strategist at Wells Fargo Advantage Fund. However, it may well turn out to be a good buying opportunity as markets are …