Russ Koesterich, Chief Investment Strategist at BlackRock has provided his insights on the implications of the Fed's non-taper last week. He concludes that the decision suggests the US economy is still not as strong as hoped and there are concerns about the resilience of the housing market in the face of rising interest rates. He points to four key asset allocation implications of the decision. Koesterick continues to prefer stocks over bonds and suggests that more aggressive investors should consider being overweight in emerging markets which would be supported by easy monetary conditions. Within fixed income, he prefers higher yield bonds over treasuries, whilst he is under-weight on rate-sensitive assets such as gold and global utility stocks. (VIEW LINK)
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