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.
2017-01-27 17:19:00 Friday ET
Tony Robbins explains in his latest book on personal finance that *patience* is the top secret to successful stock investment. The stock market embeds an
2018-05-05 07:33:00 Saturday ET
Warren Buffett shares his fresh economic insights and value investment strategies at the Berkshire Hathaway shareholder forum in May 2018 despite the new GA
2019-11-21 11:34:00 Thursday ET
Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression. The current U.S. ec
2019-02-28 20:44:00 Thursday ET
AYA Analytica finbuzz podcast channel on YouTube February 2019 In this podcast, we discuss several topical issues as of February 2019: (1) our proprieta
2018-03-02 12:34:00 Friday ET
White House top economic advisor Gary Cohn resigns due to his opposition to President Trump's recent protectionist decision on steel and aluminum tariff
2023-09-28 08:26:00 Thursday ET
Daron Acemoglu and James Robinson show a constant economic tussle between society and the state in the hot pursuit of liberty. Daron Acemoglu and James R