2017-08-13 09:36:00 Sun ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Several investors and billionaires such as George Soros, Warren Buffett, Carl Icahn, and Howard Marks suggest that the time may be ripe for a major financial market correction. The recent optimistic Trump rally has catapulted stock and bond prices by a 20% margin. This stock and bond market overvaluation seems to be a natural result of President Trump's generous pro-growth fiscal stimulus trifecta of lower income taxation, financial deregulation, and new infrastructure with corporate offshore cash repatriation. Whether the current Trump financial market rally can deliver tangible economic gains depends on the eventual GDP growth trajectory toward the target range of 2.7% to 3.3% per annum.
During the current interest rate hike, we expect most stock and bond prices to moderately react to monetary contraction and self-fulfilling prophecy in a soft downward path. This new normal scenario does not necessarily correspond to secular stagnation in the precise words of Larry Summers and others. However, it is reasonable to anticipate a reasonable financial market correction in light of the recent nuclear standoff between America and North Korea, U.S. monetary contraction, and Trump trade conservatism. Overall, geopolitical risk remains the primary source of economic uncertainty as the Trump administration seeks to maintain a delicate balance between these undercurrents for better business growth and financial stability.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-01-05 11:39:00 Saturday ET
Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown. President Trump remains adamant about having to shut d
2023-06-21 12:32:00 Wednesday ET
Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism. Michael Sandel (2013) What money
2019-02-04 07:42:00 Monday ET
Federal Reserve remains patient on future interest rate adjustments due to global headwinds and impasses over American trade and fiscal budget negotiations.
2018-06-04 08:38:00 Monday ET
Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by more than 28 million programmers worldwide. GitHub's
2018-08-11 14:35:00 Saturday ET
The Trump administration imposes 20%-50% tariffs on Turkish imports due to a recent spat over the detention of an American pastor, Andrew Brunson, in Turkey
2019-11-13 11:34:00 Wednesday ET
The new Brexit deal can boost British pound appreciation and economic optimism. British prime minister Boris Johnson wins the parliamentary vote on his new