Scott Minerd discusses the importance of transitioning sustainable development into an institutional asset class.
After breaking out of their recent trading range, yields on U.S. Treasuries could now be heading significantly lower and the U.S. economy could enjoy fast economic growth in the coming months.
It’s topsy turvy season as U.S. interest rates are falling when they should normally be rising and because 2014 might be the year to ignore the age-old advice to sell in May and go away.
The situation in Ukraine could become worse than markets now anticipate as Putin’s best interests might not be what investors expect.
The U.S. “risk-on” trade is still in place, even as some leveraged credit is showing signs of overheating.
Turmoil in Ukraine, growth concerns in Japan, and weakness in U.S. equity markets are giving U.S. investors a short-term case of heartburn but none of this should undermine the overall case for optimism.
As the Fed considers the precise timing of tightening monetary policy, a key consideration will be how many Americans want to get back to work. Monetary doves found an olive twig amid the floodwaters last week when the labor force participation rate increased slightly.
U.S. investors are largely convinced that the Fed will raise interest rates in the middle of 2015 but sluggish inflation could push that eventuality back into 2016.
The Federal Reserve’s desire to be predictable should lead to an incremental path for the coming tightening cycle and that suggests increasing exposure to floating-rate instruments.
The noisy journey from winter to spring in the United States may mask the underlying strength in the U.S. economy. The risk-on environment should remain intact, despite international tensions.
Five years into the U.S. bull market this remains a “risk on” environment, but with monetary tightening on the horizon now is a time to become more cautious and start thinking about what comes next.
In addition to serving as Global Chief Investment Officer of Guggenheim Partners and Chairman of Guggenheim Investments, Scott Minerd is also a member of the Federal Reserve Bank of New York’s Investor Advisory Committee on Financial Markets, an advisor to the Organization for Economic Cooperation and Development, and a contributing member to the World Economic Forum. Minerd is regularly featured in leading financial media outlets, including Financial Times, Barron’s, Bloomberg, CNBC, Fox Business News, Forbes, and Reuters.
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Global CIO Scott Minerd visits Bloomberg TV to sort through the market and economic implications of the first rate cut since the financial crisis.
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