Macro

(Washington)

Fed chief Yellen’s future is in doubt as President Trump may name a different person to lead the Fed later this year. Chief Yellen and all the major central bank chiefs are currently in Jackson Hole, Wyoming for their annual conference, and Yellen is set to make a speech. She is expected to deal with financial stability issues directly, which means her statements could potentially be very disruptive to markets, especially if she signals that the market is overvalued.


FINSUM: We doubt Yellen will do anything to rock the boat given her usually reserved demeanor, but it is certainly not outside the realm of possibility. Perhaps the greatest risk is an accidental misstep that markets take in a different way than she intended.

(New York)

Let’s face it, the market is expensive across the board. This is a reality investors will need to live with in the immediate term. But how does one make good investing decisions in the current environment? The WSJ has published an article citing recommendations from a number of top firms. Russell Investments, for instance, is recommending being underweight US stocks and overweight European and EM ones. “The corporate credit market is overvalued”, says an MD from Brean Capital, particularly in the high yield space. Another commentator argues US stocks will jump higher because of a potentially strong economy in 2018, a reality that many investors aren’t ready for.


FINSUM: We have mixed feelings on US stocks. On the one hand they do seem to be overvalued, but on the other, companies appear to be in a good position to capture margin expansion if we see a good economy next year.

(New York)

Morgan Stanley has put out some new investment recommendations. The bank thinks right now is a time when investors can enjoy some big gains, as the economic backdrop is the most positive since the Financial Crisis; at least until the whole picture changes next year. “Synchronous self-sustaining growth, contained inflation and well-telegraphed, gradual withdrawal of policy should drive more animal spirits”, says the bank. Morgan Stanley thinks that in typically late cycle behavior, companies will be investing more and more buyers will be drawn into the stock market. Some of the bank’s current picks include US and Japanese equities over European ones, but the Euro as a currency. Emerging market currencies should do well, so too should Chinese stocks. In US credit, investment grade should outperform high-yield.


FINSUM: Some broad picks here from MS. It looks like they are short-term bullish in a number of areas.

Page 1 of 41

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…