Osprey Associates: Precipitous plunges in stock markets at home and abroad, worsening data from a seemingly moribund and long-toothed US economic recovery and a growing sense that the central bank she chairs may have jumped the gun with its December rate hike saw the most powerful woman in finance, Janet Yellen, sound a decidedly less hawkish tone in prepared statements for testimony to Congress on Wednesday.Testifying in front of the House Committee on Financial Services, Ms. Yellen appeared to reiterate her view that the central bank would persist with its plans for “gradual” adjustments to monetary policy while also acknowledging what she described as “conditions less supportive of growth”.
Stock markets have fallen sharply since the Fed’s 25 basis point hike in mid-December, the first increase in nearly a decade with January going on record as the worst start to a New Year for the Dow Jones Industrial Average.
“US stock markets are in bear market territory and there doesn’t appear to be much of a safety net that could prevent them drifting lower,” said James Conroy, chief economist at Osprey Associates.
“Mr. Yellen appeared to be trying to maintain the illusion that the Fed is in control and is committed to the course but it won’t have escaped her attention that hardly anyone believes she will be able to raise rates any further in 2016,” he continued.
Osprey Associates says it remains committed to its strategy of holding emerging market equities despite the capital outflows of recent months and reaffirmed its confidence in the resumption of the secular bull market in gold citing a growing likelihood that the Fed will resume its quantitative easing program at some point in 2016.
About Osprey Associates:
We at Osprey Associates offer ourselves as a guide through an increasingly complex financial marketplace to thousands of investors both large and small and, with some $3.3 billion-worth of assets under our diligent stewardship as at March 1st 2014, we consider ourselves to be one of the premier wealth and investment management practices in Asia.
It is our sincere hope that your visit to our website provides you with valuable and easy-to-understand insight into the world of wealth and investment management.
Contact Osprey Associates:
Toranomon Kotohira Tower,
Level12, 1-2-8 Toranomon,
Minato-ku, Tokyo, Tokyo-to, Japan
+81345704348
info@osprey-associates.com
http://www.ospreyassociates.com