Purley Wealth Management stated that it is currently focusing on investment areas in the market with potential for high returns and low risk characteristics, such as individual securitized credit. These areas have the opportunity to benefit when the market rises, while effectively limiting the downside risk from rising interest rates, a risk that is currently underestimated by the market. With the Federal Reserve about to take action, short-term strategies become more important. At the same time, with the prospect of a rate cut by the Federal Reserve, the US dollar is expected to weaken in the short term, benefiting emerging market bonds as a result. Purley Wealth Management holds a more cautious view on the Federal Reserve's future rate cut policy compared to the market. While the market generally expects the Federal Reserve to cut interest rates about 7 times in the next 4 to 5 quarters, Purley Wealth Management expects the Federal Reserve to cut rates by 25 basis points in September, but does not rule out the possibility of more action by the Federal Reserve before the end of this year. Purley Wealth Management points out that under the Federal Reserve's policy of "relatively high long-term interest rates," the US economy, while suppressed, is not on the verge of collapse. Although inflation is indeed moving in a reasonable direction, its future trajectory still remains uncertain. Compared to the end of 2019, the level of globalization in the world today has decreased, and inflation pressures may be greater. As the distorting effects of the pandemic on the financial system gradually dissipate, the issue of global fragmentation is now more worthy of attention
According to the information from Zhitong Finance APP, PwC stated that it is currently focusing on investment areas in the market with potential for high returns and low risk characteristics, such as individual securitized credit. These areas have the opportunity to benefit when the market rises, while effectively limiting the downside risk brought by rising interest rates, which is currently underestimated by the market. With the Federal Reserve about to take action, short-term strategies become more important. At the same time, with the prospect of a rate cut by the Federal Reserve, the US dollar is expected to weaken in the short term, benefiting emerging market bonds as a result.
PwC's view on the Federal Reserve's future rate cut policy is more cautious than the market. The market currently generally expects the Federal Reserve to cut interest rates about 7 times in the next 4 to 5 quarters, while PwC expects the Federal Reserve to cut rates by 25 basis points in September, but does not rule out the possibility of more action by the Federal Reserve before the end of this year.
PwC points out that under the Federal Reserve's policy of "relatively high long-term interest rates," the US economy, although suppressed, is not on the verge of collapse. While inflation is indeed moving in a reasonable direction, its future trajectory still has variables. Compared to the end of 2019, the level of globalization in the world today has decreased, and inflation pressures may be greater. As the distorting effects of the epidemic on the financial system gradually dissipate, the issue of global fragmentation is now more worthy of attention