CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

Is it possible that the market has gotten ahead of the Fed? - Charles Schwab

2019-06-21 03:00

Liz Ann Sonders, Senior Vice President, Chief Investment Strategist at Charles Schwab see as main concerns for equities the ongoing trade war uncertainty and the possibility that the market has gotten ahead of the Federal Reserve. 



Key Quotes: 



“New market highs are always worth cheering, but keep in mind the limited movement overall in U.S. stocks over the course of the past 18 months. If a recession is coming, we will likely look back at this period as part of a topping process for stocks (tops generally are processes over time; bottoms are typically more V-shaped moments in time).”



“Aside from ongoing trade war uncertainty, our other concern is the possibility that the market has gotten ahead of the Fed. With fed funds future now discounting more than 100 basis points of easing by the end of next year, equities may be at risk if the economy’s deterioration supports that much easing; but also at risk if the Fed under-delivers. If the economy hangs in there and rate cuts are simply insurance cuts, the additional accommodation could be a sufficient offset to the negative effects of the trade war.”

 


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

Economic news

    Exchange Rates

    GBPUSD +0.01% 1.29378
    EURUSD +0.47% 1.18242
    XAUUSD +0.29% 1908.91
    XTIUSD +1.45% 41.521
    NAS100 -0.23% 11691
    US30 +0.22% 28353.7