Scott Minerd discusses the importance of transitioning sustainable development into an institutional asset class.
Although volatility is likely to stay relatively high going forward, the recent move in the markets to risk-off mode appears to be a temporary condition.
Global competitive devaluation will continue to cause asset prices to rise in the near-term, but the broader implication of the policies will be increased volatility.
The U.S. economic expansion continues, but increasing attention to political risks, and currency wars, in particular, indicate a period of heightened volatility could be ahead.
Rising equities and tightening credit spreads define the near-term investment outlook, but this is not the first time we have seen this cycle play out in recent memory.
The euphoria among my fellow Davos attendees was palpable, but short and long-term risks for the world’s advanced economies, including competitive currency devaluation, remain concerning.
The broad improvement in U.S. economic data indicates that the economy is likely to continue to expand, supporting earnings growth and pointing to an eventual return of leveraged buy outs.
As yields continue to dwindle and risks in the fixed income market come into clearer focus, investors have begun to regard equities as a compelling alternative to bonds.
Promising fundamental developments suggest that U.S. economic expansion is likely to continue and equities will rise in the first quarter.
Interest rates should rise through 2013, however, the level to which they can increase will be limited by the Federal Reserve’s ongoing attempt to stimulate activity in the housing market.
The Great Depression brought about the Keynesian Revolution, complete with new analytical tools and economic programs that have been relied upon for decades. Over the years, the accumulation of these policy actions has reduced the flexibility to deal with crises and nations have now exceeded their ability to finance themselves without relying on their central banks as lenders of last resort. Increasingly large doses of monetary policy are required just to keep the economy expanding at a subpar pace. Some have referred to this as reaching the Keynesian endpoint.
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 calls in to Bloomberg TV to discuss the policy response to the crisis.
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