Russia has managed to put a temporary halt to the unfolding disaster but only by spending a quarter of its reserves and forcing local companies to buy roubles. The rout will resume
The U.S. seems to be doing well and the oil price fall will allow the fed to keep rates low for a lot longer. There may be a token raise of 10-20bp over the next 6 months but that'd be it, and even that would surprise me.
Europe is still screwed. All eyes are on the ECB and its hoped for QE. There will be no shock and awe here though. Any QE will be mild in scope and scale to appease Germany. The real hope for ant european QE will be to weaken the Euro and so restore lost competitive to some companies via a devaluation. The U.S. and U.K. both did it quietly, now the Japanese are doing it - and shouting about it. Next up is Europe.
What to buy? There's no real value in bonds - not much is likely to change in the foreseeable future and yields are ridiculously low. Equites? Well maybe if economies do take off, but a lot of good news is already priced in. To be honest at the moment I'm struggling to find a good place to put money to work. I'm hoping for some results from start ups and early stage companies to boost returns.
Good luck.
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