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Market Overview

Global Overview October 13, 2016

As we approach the homestretch and start to focus on 2017, global economies will be confronted by numerous challenges and uncertainties. As the world’s largest economy, the US will not only be adjusting expectations and realizations for the next four years based on who will be occupying the White House but also whether the Federal Reserve will finally have the will to pull the trigger and restart its initial feeble attempt which began almost a year ago to normalize interest rates. Many issues will remain on the table after Election Day. As much as Hillary Clinton appears to be in the lead to win the Presidential elections, recent revelations courtesy of WikiLeaks tell a confusing tale as to which HRC will be running this country. In addition, Wall Street is extremely fearful of Donald Trump winning, especially because of his very vocal opposition to existing treaties on trade and his open complaints about Janet Yellen and the Federal Reserve.
Monday, October 17, 2016/Author: John Hsu/Number of views (542)/Comments (0)/

Global Overview July 13, 2016

China

At this point, we believe that China has dodged the big bullet. Hard landing is no longer in the vocabulary of most economists and forecasters. Detractors seem to have to resort to rehashing issues such as high leverage and high indebtedness to justify their bearish case. Yet there is no sign of impending doom. As a rather closed economy, the central government in Beijing has managed to keep rather tight control over China’s numerous problems. The recent fear about flight capital also seems to have abated. At the end of the day, foreign currency reserves still stand over $3.2 trillion. As new issues such as Brexit have grabbed the headlines, China seems to have faded to the back page. As an example, the recent decline of the yuan against the basket has not gathered much attention compared to what happened almost exactly a year ago. In the meantime, calm seems to have returned to the Chinese stock market as the economy stabilizes.
Wednesday, July 13, 2016/Author: John Hsu/Number of views (649)/Comments (0)/
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