In a review of the global economy, the World Bank said fears about the euro zone had reduced investors’ tolerance for risk, and predicted slumping growth in coming years.
OTTAWA — Canada’s economy is increasingly being caught in the tail winds of the downward global spiral, but some of the country’s problems are also homegrown.
The Bank of Canada says low interest policies that it and other central banks have put in place are adding another layer of risk to the already stressed global financial system.
The Canadian central bank says near record level interest rates that have been in place since the 2008-09 recession are taking their toll on insurance companies, pension funds.
The International Monetary Fund sees the Federal Reserve maintaining large monthly bond purchases until at least the end of this year and urged the central bank to carefully manage its exit plan to avoid disrupting financial markets.
Unwinding a policy of record-low interest rates and US$85-billion in monthly bond-buying known as quantitative easing will be challenging even though the Fed has “a range of tools” to withdraw the stimulus, the IMF staff wrote in its annual assessment of the U.S. economy.
(ZURICH) — A leading lobby group for the world’s financial institutions is warning investors not to get caught short in emerging markets if rich-country central banks end their easy and cheap money policy of the past few years. The Institute of International Finance said Tuesday that the withdrawal of massive stimulus by the U.S. Federal Reserve and other central banks could lead to a “boom-bust cycle” in emerging markets if investors are unprepared.
(ZURICH) — A leading lobby group for the world’s financial institutions is warning investors not to get caught short in emerging markets if rich-country central banks end their easy and cheap money policy of the past few years. The Institute of International Finance said Tuesday that the withdrawal of massive stimulus by the U.S. Federal Reserve and other central banks could lead to a “boom-bust cycle” in emerging markets if investors are unprepared.
It will not come as a surprise to anyone who has spent more than a few cursory minutes reading ZeroHedge over the past few years (back in 2009, then 2010, and most recently here, and here) but the rolling 'beggar thy neighbor' cu
The global economy led by Europe and China continues its downward path. Will the US follow?
First let's take a look at China. Markit reports China Manufacturing PMI Declines 8th Consecutive Month.
Key points
The banks have had a long run of strong profits but the good times are about to become a little less so, according to Ed Clark, chief executive of Toronto-Dominion Bank.
Europe remains in a shambles, the U.S. still hasn’t recovered, while in Canada strong tailwinds such as the housing market have turned into headwinds. But the real challenge, “the underlying issue” is what’s going to happen to interest rates, Mr. Clark told RBC Capital Markets’ annual bank CEO conference in Toronto on Tuesday.
Rising Dividend Investing submits: General Mills (GIS) is up 22% over the last twelve months. A questioner wants to know what our dividend valuation model is signaling about the stock's prospects for the coming year. In addition, several questioners have asked if we are a pure "buy and hold" manager, or if we take profits under certain conditions.
Andrew Corn submits: Investing in Equities is all about managing risk. It really doesn’t matter where the market has been recently or where it is predicted it will be next week. That doesn’t matter.