How much longer will the sideways trend on the stock markets last? Negative and positive factors balance each other out. One unresolved issue among many is the U.S. debt ceiling.
Article on tag "Fed funds rate"
Constructive central banks
Risky asset classes such as equities have recorded price increases at the beginning of the year. The core question for the investor is: Is this recovery after the sharp decline in Q4 sustainable or not?
All eyes on Washington: Will the Fed funds rate be raised?
Interest rate decision by the Fed Tomorrow, Thursday 17 September 2015, the federal Open Market Committee (FOMC) of the US central bank Fed will be taking an important decision. Is the Fed funds rate to be raised or not? The financial markets have accorded this decision a particularly important role. After all, the rate hike […]
Emerging markets equities: no comeback at this point
Based on earnings expectations emerging markets equities are currently valued 27% below the price/earnings ratio of developed markets equities. The long term average of this discount is 19%. Closing the gap is a question whether the confidence of the markets in the earnings expectations is solid enough to facilitate a re-(e)valuation.
Fed funds rate – a threat to the equity markets?
The US central bank, the Fed, is very likely – almost 90%, according to Fed funds futures – to raise the Fed funds rate this year. The expected rate hike has been one of the dominating topics on the financial markets for a year. The bursting of a mega bubble, rising pressure on fragile emerging […]
The confrontation of the doves
The most important central bank in the world, i.e. the US Fed, made an announcement yesterday that attracted a large deal of attention from investors. The bank withdrew its assurance to remain “patient” before the Fed funds rate would be increased. This paved the way for a possible abandonment of the zero interest rate policy, […]