Are US inflation pressures building? 30/10/2014 There are good reasons to be concerned about deflation risks in the global economy. The Eurozone and Japan have significant output gaps (the gap between the potential growth rate of an economy and the actual growth rate) and chronically high unemployment rates, which are suppressing demand. Meanwhile, weak commodity prices, including both oil and food, and the strength of the US dollar (and sterling) are keeping price pressures low. These disinflationary forces are impacting real economic activity and reducing confidence. Inflation globally has remained absent throughout 2014, and that may well persist in the near term. However, looking at the US in isolation, in our view there is evidence of inflationary pressures emerging that suggest over the medium term that the direction of travel for US inflation is higher, not lower, from current levels.
Dividend strategies help benefit from Asia's growth, says CIO 28/10/2014 Emerging markets fall in and out of favour with investors on a cyclical basis throughout the year, but many experts believe that Asia in particular will sustain long-term growth. Robert Horrocks, chief investment officer of Matthews Asia and portfolio manager of the Asian Growth and Income and Asia Dividend strategies spoke to thewealthnet about his long-term outlook for the Asian region.
Market correction, not collapse, says BNY Mellon 23/10/2014 The return of volatility to equity markets raises the question of whether the turbulence is merely an expected side effect of the shift in monetary policy as the Federal Reserve ends quantitative easing, or a signal of more serious trouble to come.
According to BNY Mellon this is a period of correction rather than a collapse.
Market collapse or correction: It's that old but not that familiar October feeling 17/10/2014 October and stock market collapses go together. The Wall Street Crash of 1929 occurred in October when on 28 October (Black Monday) and 29 October (Black Tuesday) the Dow Jones Industrial Average lost 12 percent and 13 percent respectively. On 19 October 1987 (another “Black Monday”) the Dow plunged by 20 percent, an event replicated by major market indices around the world. More recently in 2008 the Dow fell by around 14 percent.
JP Morgan's Perez maintains faith in Europe, favours Asia ex Japan 26/09/2014 The recovery is slower than anticipated but it is not the only difference with this cycle according to Cesar Perez EMEA chief investment strategist at J.P. Morgan Private Bank. While the global recovery continues to be led by the US and he retains confidence in European recovery albeit at a slower pace than anticipated.
Isolating the signal from all the interest rate noise 13/08/2014 Another week and no doubt another continuation of the ongoing debate about the possible timing of interest rate hikes in both the UK and the US. The publication of The Bank of England’s Inflation Report today (13 August) will probably add further fuel to the debate as will the latest developments in Ukraine, the Middle East and perhaps even the UK and the US economies.
GAM considers emerging market reform opportunities 07/08/2014 Reforms driven by pressure from the growing middle classes are a major emerging theme for emerging markets in 2014 according to GAM's Matt Linsey, manager of the GAM Star North of South EM Equity fund.