David Ashworth

Rate cut and stocks Monetary accommodation is generally good for stocks. A cut in interest rates makes borrowing cheaper for households and businesses, pushing them to spend and invest. A rate cut is good for stocks because it allows companies to borrow money at lower interest rates and invest in new plants, machinery, or operation expansion, […]

ECB chief Mario Draghi had nothing to say about either tapering or extension of the bond buying program.

A legitimate bull market In this series, we’ve taken a look at Richard Bernstein’s views on investors’ fear of an impending bear market. In Richard Bernstein Advisors’ October Insights newsletter, he rejects the notion that the current rise in US stocks (SPLV) (OEF) has been brought about only by the Fed’s easy monetary policy. In the […]

Retracting monetary accommodation on time is crucial as well. This was the chief reason why three dissents took place in the September FOMC.

The credibility of the Federal Reserve was a concern raised by some policymakers at the September FOMC (Federal Open Market Committee) meeting.

The issue of the Fed’s credibility is not a new one. The effectiveness of the prolonged monetary accommodation has sparked a lot of debate in the past.

When we talk about the relationship between the US dollar and bonds and how currency movements impact bonds, we’re essentially talking about international bonds.

The relationship between the US dollar and US stock indexes can be best said to be complex. It’s mostly a change in the greenback that impacts stocks.

In its October World Economic Outlook, the IMF projected that India’s economic growth would reach 7.6% in both 2016 and 2017.

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.

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.

It’s important to remember that the ECB (European Central Bank) hasn’t officially announced that it’s discussing tapering

Like their equity peers, bonds can be short-sold as well. You can do it by either shorting an ETF or investing in an inverse ETF.

Equities gain Indian equities rose on October 4, 2016, the day of the RBI’s (Rerserve Bank of India) latest monetary policy announcement. The central bank’s cut of its repo rate had a positive effect on equities, with bonds rising initially along with the Indian rupee. Banking and telecom stocks were among major gainers during the […]

Components of inflation While food inflation in India has been pushing retail inflation up, fuel inflation (BP) (STO) (RDS.B), another important component, has been subdued. According to the October monetary policy statement issued by the RBI (Reserve Bank of India), “Fuel inflation has moderated steadily through the year so far.” The RBI has also announced […]

Measures of inflation in India The RBI (Reserve Bank of India) considers the CPI (consumer price index) as its primary gauge of measuring inflation. Prior to the RBI adopting the CPI, in India (PIN) (FINGX), another measure of inflation, the WPI (wholesale price index), was its key gauge of inflation and is still considered for […]

One of the key features of Japan’s new monetary policy framework is its inflation-overshooting commitment.

The Bank of Japan will set two interest rates: a short-term policy rate and an operating target for long-term interest rates. These rates will serve as guidelines for market operations.

According to Kuroda, “Japan’s economic activity and prices, as well as financial conditions, have improved substantially, and Japan’s economy is no longer in deflation.”

Haruhiko Kuroda gave a new theme to Japan’s monetary policy in a September 21, 2016, meeting, focusing on yield curve and monetary accommodation.

The short-term performance of the Columbia Select Large Cap Growth Fund – Class A (ELGAX) is excellent, and the past six months have been great for the fund.

The Columbia Select Large Cap Growth Fund (ELGAX) invests at least 80% of its assets in common stocks of US-based and foreign companies with market caps in the range of companies in the Russell 1000 Growth Index.

The past one month has been relatively poor for the Harding Loevner International Equity Portfolio – Investor Class (HLMNX).

Moving on to the fixed income space, the Janus team sees holding duration in portfolios as a risk.

In the “Janus Market GPS,” the team had outlined its belief that a low unemployment rate signaled tighter labor market conditions.

In this series, we’ll look at the Janus Asset Allocation team’s views on inflation, policy measures, and asset allocation (ITOT) (NEAR), given its assertion that inflation pressures are building.

Indian equities fell on August 9, the day of the monetary policy announcement. Benchmark equity indices like the S&P BSE Sensex and the Nifty 50 fell 0.4%.

The RBI thinks that risks to inflation are “tilted to the upside.” A subsequent rise in inflation could have a negative impact on consumer spending.

The RBI looks at the CPI as its primary gauge for measuring inflation. The RBI has CPI growth targets to adhere to while deciding its monetary policy stance.

The Harbor Capital Appreciation Fund Investor Class has tanked by 3.5% YTD in 2016, making it the second-worst performer YTD among our 12 funds.

In his July 2016 Insights newsletter, Richard Bernstein stated, “Safe investments are safe until everyone wants them.”

If negotiations after the Brexit vote pave a tough road for the United Kingdom, then other countries will be forced to rethink a referendum.

The Invesco Asia Pacific Growth Fund Class A (ASIAX) has had a great 2016 so far. It’s a top performer among the nine funds in this review.

Given the diversity it can provide due to its composition, Asia makes a compelling investment destination for investors who are looking for growth.

The AB International Growth Fund’s assets were spread across 57 holdings in May 2016, and it was managing $334.2 million in assets.

There have been significant steps toward the eventual inclusion of China A shares in the MSCI Emerging Markets Index.

The World Bank expects the pace of US economic growth to be 1.9% this year—a sharp correction from the 2.7% pace the bank projected in January 2016.

In its 25th annual Global Economic Prospects report, the World Bank did not have many good things to say about the global economy in 2016.

Industrial production remains a problem for India, with the RBI (Reserve Bank of India) noting that the index measuring industrial production decelerated in fiscal 2015–16.

In his investment outlook for June 2016, Bill Gross asserted that “carry” is compressed in nearly every form. It has more risk than return.

Bill Gross thinks that the era of double-digit stock returns (SCHB) (USMV) and high single-digit investment-grade bond returns is over.

In his latest monthly investment outlook for June 2016, bond market veteran Bill Gross talked about “carry” in financial markets.

In his monthly investment outlook for June 2016, Bill Gross outlined that money managers who have decades of experience witnessed a “magnificent era.”

As of May 27, 2016, FSAEX had risen by 3.3% YTD (year-to-date) in 2016, making it the second-best performer among the ten funds in this review.

Although a particular business cycle can have distinct features, all seem to go through four broad and distinct phases: early, mid, late, and recessionary cycles.

Brazil’s top-exported commodities are soybeans, iron ore and concentrates, petroleum oil and products, raw cane sugar, and oil cakes and other solid residue.

FDGRX’s assets were invested across 394 holdings as of March 2016, two more than a quarter ago. It was managing assets worth $37.8 billion as of March’s end.

The Janus Fund – Class A (JDGAX) was founded in February 1970 and has an expense ratio of 0.98%. There is a minimum of $2,500 to invest in this fund via Class A shares, but there is no minimum subsequent investment.

The Fidelity Series All-Sector Equity Fund was founded in October 2008 and has an expense ratio of 0.67%. Shares of this fund are offered only to certain other Fidelity funds.