Jeffrey Gundlach Advises Investors to Invest in Mortgages
During a gradual rate hike scenario, Gundlach believes investment in mortgages is the best strategy.
Jeffrey Gundlach shared his view on the European bond market in a recent interview.
Since the US presidential election, we have seen a huge market rally.
Prominent bond investor Jeffrey Gundlach discussed the bond market’s performance and his expectations for the bond market in a recent interview.
Markets reacted positively after the Fed declared a rate hike of 25 basis points on March 15, 2017.
After showing weakness for two consecutive days, the financials sector fell on March 21. On Tuesday, the S&P 500 Financials sector index fell 2.9%.
After starting the day on a weaker note, the S&P 500 fell on Tuesday to the lowest levels since February 14. On March 21, it fell 1.2%.
As the Fed moves toward a gradual, continued rate hike process, it’s important for investors to keep an eye on the other central banks.
In the past five months, we’ve been watching the various economic indicators in the US reflect these improvements.
Gross believes that credit creation and the cost of credit should be monitored more properly.
China’s financial markets already crashed in August 2015. However, the total debt-to-GDP ratio is still too high, at 277% in 2016.
The rising credit level is a warning sign for the economy, and Gross believes this situation may trigger a crisis like the 2008 global debt crisis.
Gross is a big critic of the Fed’s prolonged lower interest rate, believing that the leveraged based financial system is a major problem for the economy.
Visa (V) stock has risen 9.7% over the past six months and 25.7% over the past year.
32 of the 36 analysts covering Visa (V) rated it a “buy” or “strong buy” in March 2017.
Visa (V) took a long-term debt of $16.5 billion for the acquisition of Visa Europe in 2016.
The payment processing industry is witnessing major changes globally due to regulatory changes, increased competition, and a demand for continual innovation.
Visa (V) has managed to expand its operations globally and has seen improving operating margins over the past couple of years.
Visa (V) is witnessing high growth through services and data processing backed by operating business growth.
Visa’s (V) US payment volumes have shown strength over the past few quarters, reflecting relative outperformance when compared with industry peers.