Focus

The developed world is beginning to run on empty because investments discounted at near zero over the intermediate future cannot provide cash flow or necessary capital gains to pay for past promises in an aging society So the Fed has chosen to hold off on their goal of normalizing interest… Read More »

The Syrian refugee crisis is the worst since the millions displaced by the Bangladesh Liberation War almost half a century ago, in the absolute numbers of cross-border displaced people, not counting those leaving other countries in Europe, the Middle East, and Africa We expect the number of asylum seekers in… Read More »

   Plans for normalization deferred, not derailed “Today the FOMC signaled that plans for interest rate normalization are deferred but not yet derailed. It’s difficult to categorize this outcome as a genuine surprise. While the rate decision and accompanying policy statement were no doubt dovish relative to expectations, the so… Read More »

Whilst economic forecasters are currently concerned about falling oil prices and the implications for global growth, weather forecasters worry about the impact an El Niño weather event could have on global weather patterns In August, America’s National Oceanic and Atmospheric Administration (NOAA) said there is a 90% chance that the… Read More »

WisdomTree believes that screening and weighting equity markets based on their fundamentals can help produce higher total and risk-adjusted returns over a complete market cycle We continue to see proliferation of the term “smart beta,” which in its simplest terms indicates an index construction that does not weight constituents by… Read More »

Investors woke up this week to headlines of “Black Monday”—now also associated to the 24th of August 2015—as equity markets continued to fall explosively after a poor week last week. Over the weekend, market expectations had been high that the People’s Bank of China would offer additional market support, on… Read More »

Sharp declines in China’s equity markets have heightened fears about the country’s economic prognosis and what it might mean for global growth. While concerns center on the emerging markets, the tumult has spilled across global financial markets. Our advice: don’t panic. August regularly brings periods of particularly low liquidity in… Read More »

The attention of investors is dominated by EM turbulence and speculation about the Federal Reserve’s tightening cycle. The view of Roubini Global Economics on the most likely timing of the Fed’s first rate hike has moved from September to December. Heatmap: Sensitivity to Fed Policy (0 = vulnerable, 10 = resilient)… Read More »

The announcement by the Chinese government on the 11th of August 2015 relating to a change in the yuan quotation method and the consecutive depreciation triggered a new phase of panic in the financial markets. The pressure was particularly focused on emerging markets currencies, with fears of a currency war… Read More »

With inflation slipping further below 2 percent, and Greece, Puerto Rico and China firmly on investors’ watch lists, here’s why it appears the Fed will still raise rates this year The US Federal Reserve (Fed) is tasked with the dual mandate of promoting maximum employment and stable prices. Under normal… Read More »