This is the second in a three-part series on Innovation Trends Retooling the U.S. Economy.
Technology is advancing far more rapidly than many of us can fathom. And it is not just discovery, but also societal adoption. History shows a constant acceleration in the societal adoption of major technological advances in communication.
Innovation Trends in the U.S.
We have identified three major trends that are transforming the U.S. economy. Continue reading
1. Economic data and Political Instability: Recent economic data continues to disappoint. Meanwhile, the political situation in Russia could create adverse headwinds for surrounding economies, notably Germany. The ECB should surely be concerned by these developments. Continue reading
Posted in Fixed Income, Industry Insights, Uncategorized
Tagged Central Banks, ECB, economy, Europe, European markets, Eurozone, Fixed Income, inflation, QE
2014 has not been the year we expected for European Equities. Despite delivering positive returns, the asset class has been shrouded by on-going macro concerns and news flow. Could the stars be aligning for 2015? With greater ECB commitment, a supportive FX rate and earnings growth appearing to return, this may prove to be the year that investors are finally rewarded for holding the asset class.
Last week in the capital markets the oil selloff resumed and took the stock market with it. It was bad news for oil bulls, but consumers like lower gasoline prices, auto sales remain strong, and November retail sales beat expectations. Although mortgage applications continue to trend sideways at low levels, the labor market continues to improve gradually. The U.S. business climate shows improvement with small business as a gauge, but global trade data shows prices trending toward deflation, not inflation, with very slow growth in the Eurozone, slowing growth in China, and questions as to whether Japan is recovering or not. Then there’s the Fed.
Regulatory constraints aimed at reducing risk in the banking industry have had the effect of reducing liquidity in certain segments of the bond markets. At the same time, credit risk has been rising as corporations expand their balance sheets with low-cost debt, causing credit quality to deteriorate. With the economy finally improving, investors need to be concerned about interest rates rising. Continue reading