Economists and strategists see little impact from the US government shutdown in the short-term, but believe it could have a significant impact on the economy and stock market if a resolution is not found swiftly.
Ben Bernanke made moves to allay fears the Fed has changed course on its monetary policy, announcing QE easing will only be implemented if the all economic requisites are met.
The European Central Bank has never been the quickest to react to anything so it is no surprise that it has not introduced any form of quantitative easing.
Thomas Samson, high yield portfolio manager for corporate credit specialist Muzinich & Co., says the recent correction in credit markets which began when Fed Chairman Ben Bernanke signalled quantitative easing may come to an end should benefit investors over the medium to long-term because it will result in higher coupons for new issuers in a…
The first half of this year has seen stock market volatility increase, with many of the gains in some of the developed markets made in the first four or even five months pretty much wiped out.
Markets dropped following Ben Bernanke’s announcement the Fed could start tapering QE before the end of the year, with a view to bringing it to an end mid-2014 should economic conditions remain viable.
When it comes to training for a marathon tapering is seen as a good thing. Any mention of the tapering of QE from Ben Bernanke, on the other hand, and markets are hit with a crisis of confidence.
State intervention can work in inefficient markets, but should be avoided in those that are correctly functioning, according to Richard Woolnough of M&G Asset Management.
Gold has plummeted to $1406/oz but commentators are torn on the reason behind the fall, with the situation in Cyprus, investor confidence, and its failure as a safe haven all cited as possible causes.
It is no surprise that income-based equity strategies have been the best performers this year, but investors' choices beyond this asset class are limited, according to Threadneedle's Mark Burgess.
The economic stimuli unveiled by the Japanese government may be drawing in equity investors, but not everyone is keen to jump on the bandwagon before seeing if the policies actually work.
Fundamentals may be weak, but it should still be a constructive year for growth and inflation assets although the main support is unlikely to come from growth itself.
