• Latest
  • Trending
  • All

Scene is set for a ‘generational opportunity’ in equities, strategist says

October 9, 2020 11:13
Dollar lacks upside momentum due to lower Treasury yields

USD bulls remain on the offensive across the market

August 19, 2022 09:53
Stocks erase gains as cautious tone persists in the markets

Markets mixed amid persisting global uncertainty

August 19, 2022 09:43
Dollar lacks upside momentum due to lower Treasury yields

Buying pressure keeps building surrounding the US dollar

August 18, 2022 08:47
Risk demand prevails after FOMC minutes

Stocks trend lower after FOMC minutes

August 18, 2022 08:37
Dollar lacks upside momentum due to lower Treasury yields

US dollar maintains bullish trajectory

August 17, 2022 07:08
Global stocks retreat after a plunge on Wall Street

Global stocks mixed-to-higher, investors stay cautious

August 17, 2022 06:56
Dollar lacks upside momentum due to lower Treasury yields

USD demand persists across the market

August 16, 2022 06:49
Euro rises despite а stronger dollar

Risk mood turns more measured, euro threatens parity again

August 16, 2022 06:42
Dollar lacks upside momentum due to lower Treasury yields

Dollar buoyed at the start of the week

August 15, 2022 05:39
Investors stay nervous as tensions escalate

Investors start the week on a cautious note

August 15, 2022 05:25
Dollar lacks upside momentum due to lower Treasury yields

Dollar tries to shrug off selling pressure

August 12, 2022 09:58
Equity markets mixed ahead of the weekend

Markets struggle for direction ahead of the weekend

August 12, 2022 09:42
  • Terms & Сonditions
  • Contact
Saturday, August 20, 2022
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Stocks erase gains as cautious tone persists in the markets

    Markets mixed amid persisting global uncertainty

    Risk demand prevails after FOMC minutes

    Stocks trend lower after FOMC minutes

    Global stocks retreat after a plunge on Wall Street

    Global stocks mixed-to-higher, investors stay cautious

    Euro rises despite а stronger dollar

    Risk mood turns more measured, euro threatens parity again

    Investors stay nervous as tensions escalate

    Investors start the week on a cautious note

    Equity markets mixed ahead of the weekend

    Markets struggle for direction ahead of the weekend

    Stocks climb marginally, pressuring the greenback

    Investors welcome cooling inflation, dollar sags

    Yellen failed to spook global markets

    Risk-off tone dominates global markets

    Stocks making recovery attempts, markets remain unstable

    Stock markets little changed amid cautious trades

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Stocks erase gains as cautious tone persists in the markets

    Markets mixed amid persisting global uncertainty

    Risk demand prevails after FOMC minutes

    Stocks trend lower after FOMC minutes

    Global stocks retreat after a plunge on Wall Street

    Global stocks mixed-to-higher, investors stay cautious

    Euro rises despite а stronger dollar

    Risk mood turns more measured, euro threatens parity again

    Investors stay nervous as tensions escalate

    Investors start the week on a cautious note

    Equity markets mixed ahead of the weekend

    Markets struggle for direction ahead of the weekend

    Stocks climb marginally, pressuring the greenback

    Investors welcome cooling inflation, dollar sags

    Yellen failed to spook global markets

    Risk-off tone dominates global markets

    Stocks making recovery attempts, markets remain unstable

    Stock markets little changed amid cautious trades

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Scene is set for a ‘generational opportunity’ in equities, strategist says

Scene is set for a ‘generational opportunity’ in equities, strategist says

by FWNews
October 9, 2020 11:13
in News
0

The unprecedented level of policy support for markets has set the scene for a “generational opportunity” for stocks, according to Patrick Spencer, vice chair of equities at Baird.

With market sentiment gripped by political developments stateside ahead of the November 3 election, stocks have received a boost in recent sessions from renewed optimism over a potential federal stimulus deal.

Although he suggested that further polling indicating a Democratic victory would offer markets more surety, Spencer argued that regardless of the election outcome, equity markets are set for a bullish period.

“(Federal Reserve Chairman) Jerome (Powell), irrespective of what he said last night (Wednesday) — and he is going to obviously maintain his $140 billion support in the market by buying bonds — but he has recently set the scene, for my mind, for a generational opportunity in equities,” Spencer told CNBC’s “Street Signs Europe” Thursday.

The Fed has deployed an unprecedented level of monetary stimulus to support markets since the onset of the coronavirus pandemic in March, and policymakers have repeatedly urged Congress to provide more fiscal support to shore up the economy.

The central bank slashed rates to a range of zero to 0.25% on March 15 and launched an open-ended bond-buying program entailing the purchase of Treasurys and mortgage-backed securities. It then followed up with a slew of measures to ensure credit markets ran smoothly, and Powell has vowed to keep monetary policy conditions accommodative until inflation returns to the Fed’s 2% target.

In August, Powell announced that the Fed would target an “average” of 2% inflation rather than setting a fixed goal, in order to offer it greater flexibility.

“He has basically said that he is prepared to run the economy hot. He is prepared to actually see until inflation gets over 2%, and he wants to see basically full employment,” Spencer said.

“Inflation hasn’t run over 2% for 10-odd years, so in my mind this is a generational opportunity for equities, and I think irrespective of who wins.”

U.S. equity markets outpaced the real economy to notch record highs at the beginning of September, only to suffer a series of losses led by a depreciation for the country’s tech megastocks.

Spencer also argued that with a sharp rebound in GDP (gross domestic product) anticipated for the third quarter, low interest rates and the market expecting a substantial improvement in corporate earnings, the short-term outlook for equity markets is buoyant.

Some market participants are sounding a considerably more cautious tone, however. Barclays Wealth Chief Investment Officer Will Hobbs told CNBC last week that markets were vulnerable to a move higher in real interest rates, particularly the U.S. tech titans that have driven much of the recovery since the March crash.

Meanwhile financial analyst Gary Shilling, who has a track record of predicting recessions, has warned of a 1930s-style decline for the stock market as investors come to realize that the economic recovery from the coronavirus pandemic will be longer and more arduous than initially thought.

Share2Tweet1
ADVERTISEMENT
FWNews

FWNews

Track the pulse of the market

Related Posts

Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

USD bulls remain on the offensive across the market

August 19, 2022 09:53
12
Stocks erase gains as cautious tone persists in the markets
Fundamental analysis

Markets mixed amid persisting global uncertainty

August 19, 2022 09:43
14
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Buying pressure keeps building surrounding the US dollar

August 18, 2022 08:47
22
Risk demand prevails after FOMC minutes
Fundamental analysis

Stocks trend lower after FOMC minutes

August 18, 2022 08:37
22
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

US dollar maintains bullish trajectory

August 17, 2022 07:08
24
Global stocks retreat after a plunge on Wall Street
Fundamental analysis

Global stocks mixed-to-higher, investors stay cautious

August 17, 2022 06:56
27

Leave Your Opinion Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Federal Reserve expands access to its Paycheck Protection Program Liquidity Facility (PPPLF) to additional lenders, and expands the collateral that can be pledged

April 30, 2020 20:30
10

Bank of Canada Senior Deputy Governor Carolyn A. Wilkins will not seek second term

September 17, 2020 13:58
10
Pound corrects higher due to dollar weakness

Safe-haven yen leads the gains while the euro struggles amid risk aversion

September 21, 2020 09:36
11

Ads

Shneider Electric

Most Popular

A slow start to the week in FX markets
Technical analysis

Dollar regains ground to start the week

January 25, 2021 07:25
118
A slow start to the week in FX markets
Technical analysis

Greenback advances modestly amid strong data

May 28, 2021 07:38
110
Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
News

Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

July 28, 2020 08:29
95
FWNews

Copyright © 2022 FWNews

  • Terms & Сonditions
  • Contact
No Result
View All Result
  • FUNDAMENTALS
  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage

Copyright © 2022 FWNews