Scott Minerd discusses the importance of transitioning sustainable development into an institutional asset class.
The surprise in 2011 may be lower rates as Treasuries and fixed income securities rally in the midst of growing uncertainty. Further down the road, if price pressures moderate, employment remains slow to recover, and fiscal headwinds mount, then Fed Chairman Ben Bernanke may fire up the printing presses once again.
I believe long-term growth in the United States will be even stronger than the market is currently discounting. The vast amounts of monetary and fiscal stimulus that have been unleashed have created a rising tide of liquidity that’s lifting asset prices for just about everything except real estate.
Restrictive monetary policy will lead to economic slowdown in the emerging markets in 2011. Since it's seldom a good bet to fight against central banks, emerging market equities are not the place to be for the next few years.
It's only a matter of time before Germany and France find the political will to lead Europe into a new era of fiscal unification. Ultimately, the motivation is the same reason Alexander the Great cut the Gordian Knot - the promise of ruling over a unified continent.
“Beggar-thy-neighbor” describes an economic policy that involves one nation devaluing its currency in the hope of increasing exports at the expense of other nations. Today, G-20 leaders are searching for an answer to their economic ills and they appear to be finding it, at least in part, through potentially perilous thoughts of competitive currency devaluation.
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 joins CNBC at Davos 2019 to explain why with so little wiggle room on rates, the Federal Reserve may be forced to reengage in quantitative easing if the economy stalls.
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