Opportunities for Value Investors
Giordano Lombardo, Pioneer Investments Group CIO, gives his view on pressing questions for investors after the recent risk asset correction: What are the risks that a new 2008-style financial crisis will occur? What is the probability of a hard landing for the Chinese economy and what are its consequences on deflationary trends around the world? What is the current level of confidence on the US economy? Is the current market turmoil opening-up opportunities for long-term investors?
Fed Rate Hike: Uncharted Territory
After seven years of zero interest rate policy the Federal Reserve Board has taken an historic, widely broadcast step in raising the target Federal Funds rate by the expected 25 basis points. The Federal Reserve has indicated that it will raise rates much more gradually than in the past. We believe this approach should help ensure that they will not undermine economic growth. At the same time, because their decision-making is data-dependent, investor uncertainty may continue, resulting in higher market volatility. Discover here the implications for fixed income and multi asset investors.