The debt clock is ticking in the United States, and at a good pace. The total US (SPY) (IWM) (QQQ) debt is currently $19.8 trillion.
We’ll have to wait to see the medium- to long-term economic impact of the Brexit. You should also take a look at other macro (ACWI) variables before making any investment decision.
After the Brexit decision, services were a positive factor, while production ended up to be a drag on GDP.
On October 27, 2016, the UK Office for National Statistics released its preliminary estimate of GDP for the third quarter. The results were a positive surprise.
The most visible impact of the ECB (European Central Bank) claiming that it had neither discussed extending its asset purchase program nor any tapering of it was on the euro (FXE).
ECB chief Mario Draghi had nothing to say about either tapering or extension of the bond buying program.
The ECB (European Central Bank) released its latest monetary policy statement on October 20, 2016.
Immediate-term bonds (ITM) are better placed since investors take less of an interest rate risk.
With a longer duration of the intermediate bonds rate curve, ITML is best suited for investors who are uncertain about the movement of interest rates in the near future.
As of September 30, 2016, ITMS has all of its investments in US dollar-denominated bonds with a credit rating of “A” or higher, thus ensuring lower risks.
In September 2016, VanEck introduced two new ETFs that provide exposure to intermediate-term municipal bonds.
The IMF expects Japanese economic growth to be 0.5% in 2016—the same as in 2015—and to tick up to 0.6% in 2017.
In its October 2016 WEO report, the IMF forecasts that the Eurozone will grow by 1.7% in 2016 and 1.5% in 2017—up from its prior forecast of 1.6% and 1.4%.
Due to the primarily low inflation environment, advanced economies have little choice but to continue with their accommodative monetary policies.
The IMF cited the “fraying consensus about the benefits of cross-border economic integration” visible in the UK’s Brexit vote as a slowdown factor.
In its October World Economic Outlook report, the IMF estimated that the global economy will likely continue to slow down, reaching growth of 3.1% in 2016.
Small and medium enterprises (SMEs) remain at the center of the narrative as China transitions from an “old” production-driven model to the “new” consumer and service-led economy.
Since the global financial crisis in 2008, China’s debt concern has increased. China (FXI) (CNXT) landed itself in massive debt to revive its economy.
We continue to believe that when evaluating any investment in either the emerging markets or any global allocation of assets, China needs to be considered.
While China may not be posting the double-digit growth numbers of a decade ago, we believe the country continues to offer interesting investment opportunities.