America’s potential GDP growth has been pegged at a dismal two percent, which could be unacceptable to many, including the US Fed. Aggregate supply-growth over time creates wealth, so if there’s less potential GDP, there’s less to share, which is a bad thing, said Vincent Reinhert, Chief US Economist at Morgan Stanley. Asked if Americans should learn to live with …
One Man’s Opinion: Does US And European Corporate Credit Still Look Attractive?
10-year US Treasury yields have remained range-bound since June last year and the trading range has been very clear, varying between 2.5 and 3 percent, suggesting borrowing is back, said Anthony Crescenzi, a portfolio manager at PIMCO. The US economic growth is expected to accelerate to about 2.8 percent this year from the low twos that has been the norm …
One Man’s Opinion: Are Technology And Healthcare Likely To Outperform The Market In 2014?
Companies actually made more money in 2013 than forecast as evidenced from Wall Street’s top bear UPS raising its 2014 earnings per share target to $117 from 115, said Gina Martin Adams, an equity strategist at Wells Fargo Securities LLC. Earnings grew at a much faster 7 percent annual rate, widening the aggregate S&P 500 base. Hence earnings growth is …
One Man’s Opinion: Should The European Central Bank Have Done More To Boost Economies?
The first eurozone composite Purchasing Manager’s Index reading for February came in at 52.7, falling short of the 53.1 that economists had called for. However, the services component of the index has improved by-and-large in most countries over the past few months and the latest reading (51.7 versus forecast of 51.9) is consistent with that, said Gilles Moec, European co-Chief …
One Man’s Opinion: The Market May See A 60 Percent Decline If It Unravels
In early part of October, on October 9 to be precise, the stock market made its low as predicted by Demark Analytics, just as it had done in 1929, said Thomas Demark of Demark Analytics. The market was expected to rally 12.6 percent, identical to the rally in 1929, he added. Asked if the markets were heading for a crash …
One Man’s Opinion: Is The Federal Reserve Likely To Focus More On Inflation Than Jobs?
The latest nonfarm payrolls data shows there’s a kind of goldilocks scenario as the numbers were not so strong that they would cause people to be concerned about the Fed moving too fast and yet they were strong enough to indicate there’s good growth, but not great growth. That’s going to put the Fed on hold for a while in …