|
|
Bailey McCann, Opalesque New York: Philadelphia-based fund of funds FIS Group has released a new markets outlook that isn't so rosy. FIS is predicting diminished returns going forward as the impact of monetary policy stalls and elections in the US and along with Brexit pressure put off the possibility of any strong fiscal response from lawmakers.
"We are beginning to transition to a fundamentally different investment environment wherein the Goldilocks
environment of the last few years, which has supported the bull market in both bonds and equities, is becoming unsustainable.
The most likely candidate for even more extraordinary monetary measures is Japan; where QE has failed to sustain positive
inflation growth, and negative interest rates in late January further eroded confidence in the BoJ and exacerbated Japan’s
deflationary impulse through an appreciating yen. QE is also facing constraints in Europe, but the ECB would face significantly
more challenging legal and cultural hurdles to adopt even more unconventional monetary policies," the research note says.
Analysts expect that as the market deals with more headwinds, any policy shifts will likely be inflationary. As a result, FIS expects to see growing opportunities in Japanese equities (on a currency
hedged basis), real assets and gold, as a possible hedge
against further debasement of fiat money. Long duration bonds will come under the most pressure in this new market.
Looking specifically to globa...................... To view our full article Click here
|
|
RSS
