You should not be fooled: The current recovery in the stock market can continue to be gone still, if the head of the Federal reserve’s Jerome Powell on Wednesday, sending the stock market expected monetary policy relaxation signals.
the recent price gains in the United States and in Europe should not be forgotten that the stock markets in the emerging countries of a less tight profit American monetary policy. Because the Fed is likely to have no interest in a strong Dollar that makes American exports, and the Dollar-indebted firms in the emerging market countries under pressure.
Therefore, a lot of American investors ‘ funds to flow for several weeks in the emerging countries and especially to Asia. In addition, the interest especially for Brazil and South Africa.
of Course, there are many emerging countries in addition to the United States with China is yet another elephant in the room. But if the pessimism should be exaggerated on the economic Outlook for China, this would be another argument for emerging-market equities.