After Donald Trump won the presidential election 2016, the financial markets have reacted very dynamically, but investors also do not seem very determined about what the political shift would mean to the global markets.
Yet they would not be to blame, especially when even the world’s greatest hedge fund managers have diversified, different views. Some foresee rapid growth, whilst others still remain cautious. We introduce both in this article.
Continue reading Hedge fund managers on President Trump’s economic policies
Donald Trump won the presidential election in 2016. Then the next question is: what does it mean to the financial markets? As Mr Trump plans to increase the federal debt to invest in infrastructure, the markets now expect high interest rates worldwide, but if you look at President Trump’s policies more carefully, you might assume something different could take place: rate cuts and QE.
Continue reading President Trump could cut rates and restart QE to fight against secular stagnation
The US GDP data for the third quarter of 2016 is what investors, including us, have been waiting for, because it is much more relevant for future rate hikes than the job data, which the Fed claims to be caring about.
The job data has already been very strong for a long time, and thus if the Fed’s preoccupation is indeed the labour market, it must have already raised rates this year, which is not the case.
So the Fed, or at least Janet Yellen, is caring about the slowdown of the US GDP growth, and the new data showed that the slowdown is indeed ongoing, and rate hakes, if any, would put an end to the already weak growth.
Continue reading Fed rate hikes would seriously hurt the US economy, as 3Q GDP shows