Scott Minerd discusses the importance of transitioning sustainable development into an institutional asset class.
As the Federal Reserve maintains a “highly accommodative” monetary policy the central bank runs the risk of allowing the U.S. economy to overheat.
While the U.S. economy is gaining momentum, investors should nevertheless brace for volatility in the next few weeks.
As the U.S. Federal Reserve debates withdrawing accommodation the doves have the upper hand, but that does not mean they won’t make a concession to hawks and hike sooner than the market expects.
Aggressive central bank accommodation from Europe to Japan and a dovish Federal Reserve bode well for equities and bond prices.
A number of factors seem likely to drive U.S. 10-year Treasury rates lower in the near term, including increasing demand, decreasing supply, and tension in Ukraine and Iraq that is triggering a flight to quality. As Treasury yields fall, a wave of mortgage refinancing could drive yields even lower, creating a compelling opportunity to rebalance portfolios.
The recent selloff in U.S. stocks is healthy and could set markets up to reach new highs by year end. Long- term investors should not fall victim to panic and sell.
Despite a disconcerting, growing consensus among investors, the likelihood of a sudden increase in U.S. interest rates is fairly remote for now.
The Fed’s not taking the punch bowl from the party, but investors should be wary of the hangover.
A few years ago, facing a world in crisis, central banks aggressively employed monetary policy to avoid catastrophe in financial markets. Now, they must be equally aggressive in fighting complacency.
Investors should expect a quiet summer with markets rolling along, but with valuations becoming frothy now is a time to consider greater exposure to assets with higher credit quality.
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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