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From Kirsten Bischoff, Opalesque New York:
The Federal Reserve's seemingly optimistic outlook released last week after a 2-day policy meeting, unleashed speculation on whether the current rally is a bear market rally or the beginning of a bull market run. However, some manager commentaries are shifting focus beyond making calls about whether we are in a recovery and instead anticipating how economic policies will affect the pace of a recovery.
Politicians and policy-makers are under huge pressure to react with initiatives that may, in some cases, go far beyond what is really necessary for the better functioning of our global financial markets, notes a recently released Clifford Chance report. These hundreds of policy measures enacted by governments around the world and the unintended consequences of each are what managers are attempting to anticipate.
"The concern is moving away from the recession," said Albert Friedberg, Portfolio Manager of the Friedberg Global Macro Fund on a call with investors last week. Friedberg noted that his statement is not an indication that he believes the recession is over (he does not), but that "the real concern now is the endgame of today's recession."
Many are voicing expectations that the levels of economic growth coming out of the recession will not mimic the recoveries of the past. Unlike what happened when we came out of the late 70's and into the early 80's, our...................... To view our full article Click here
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