Bill Gross thinks the central banks should implement their strategies very carefully and cautiously in this scenario.
Bill Gross said in his July 2017 Investment Outlook that central banks in major developed nations maintained an ultra-low monetary policy for nearly a decade.
When ECB president Mario Draghi announced that the interest rate remained unchanged at 0.0%, the euro fell nearly 0.30% against the US dollar.
An inflation level below the ECB’s target level mainly caused the central bank to maintain a dovish stance.
On Thursday, July 20, 2017, in an interview with CNBC, billionaire investor and bond guru Bill Gross shared his view on the policy decisions of central banks.
As of March 31, 2017, the top selling in billionaire investor David Einhorn’s portfolio included Apple, Time Warner, Rite Aid, and AerCap Holdings.
Einhorn believes that passive fund management investment strategies are “fundamentally momentum strategies.”
Einhorn has taken short positions in Tesla (TSLA) and Amazon (AMZN), but now he’s feeling frustrated about the strong performance of these stocks.
Einhorn is skeptical about the Amazon and Whole Foods Market deal, believing that Amazon’s interest in it will not be a great business move.
Billionaire hedge fund manager David Einhorn is well known for his investment strategy, having advised long and short bets during different market scenarios.
Visa has provided a strong return so far this year. On a year-to-date basis, it returned nearly 24.2% as of July 14, 2017.
Marriott International has provided a return of 22.5% so far in this year.
Amazon has provided a strong return so far in this year. On a year-to-date basis, it returned nearly 33% as of July 14, 2017.
Goldman Sachs estimated that Facebook’s annual sales growth could improve by 32% from 2016 to 2019.
Goldman Sachs (GS) disclosed a new strategy that could be lucrative in the present investment scenario.
Goldman Sachs (GS) said that a “buy and hold” strategy won’t do well in the present investment scenario.
The Fed’s gradual rate hike has a significant effect on the overall global market (ACWI).
In the previous part of this series, we saw that Ray Dalio is comfortable with the steps central banks have taken.
The Federal Reserve started its gradual rate hike process back at the end of December 2015. Between December 2015 and June 2017, the Fed hiked its key interest rate four times.
On July 6, Ray Dalio—chairman and CEO of Bridgewater Associates, the world’s biggest hedge fund by assets—shared his views on central banks’ shifting strategies.