Strategic Global Partners say that despite the Fed’s seemingly determined attitude towards tapering QE, stimulus will return to higher levels by year-end.
Tokyo, Japan -- (SBWIRE) -- 02/10/2014 -- Strategic Global Partners have told clients it believes that slowing economic growth in the United States will have forced the Federal Reserve to affect a U-turn on the reduction of monetary stimulus by the end of 2014.
In research note sent to its institutional clients, the Tokyo-based broker-dealer said that evidence of a slowing of the economic recovery in the world’s largest economy were there for all to see but it would require more negative data before the Fed takes action.
“January’s jobs report, softer durable goods data and a poor ISM manufacturing number all point to a weakening recovery leading more and more to ask if the Fed has decided to taper stimulus too soon” said a Strategic Global Partners researcher.
The research note apparently warns clients to ignore wild predictions that precious metals’ prices could go on to halve from where they are now.
“When sentiment towards an asset is as bearish and negative as it is to gold right now, it’s a signal that a reversal of fortune for that asset is not far off. More and more investors are beginning to sense that something is not quite right and that’s why stocks are taking a beating right now,” opined the Strategic Global Partners researcher.
The firm does believe, however, that additional stimulus may not necessarily come from renewed quantitative easing. It suggests that the Fed and the US Treasury may find a way to get money into the hands of the consumer more effectively that via the banks which still remain reluctant to lend.
“While we realize that these investments are not flavor of the month right now, we’re advising clients to invest in mining stocks and precious metals,” said the Strategic Global Partners researcher.
About Strategic Global Partners
At Strategic Global Partners we work in conjunction with international private, corporate and institutional investors to provide them with comprehensive financial services, including portfolio management, investment research and trading facilities.
As your strategic advisor, it is our job to identify profitable investment opportunities while concurrently mitigating any risks, as we look to add value to your portfolio and make it more resilient against market volatility.
We provide our clients with direct access to market-leading platforms, analytical tools and integrated services, as well as providing in depth market research and tailored advice. Whether you prioritise risk, data, transparency, and/or complex issues regarding taxation, regulation or developing markets — we'll tailor an investment strategy that is right for you and structure your portfolio accordingly.
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