pulse-investments-goodbody-wide-feb20

New Direction

31 August 2020

Senior Research Analyst Sebastian Orsi outlines the Federal Reserve’s updated monetary policy strategy which was announced last week, and what the implications are for investors.

  • The major economic event this week was the Federal Reserve Conference at Jackson hole where Chairman Jerome Powell outlined the Federal Reserve’s dual mandate of tacking inflation and unemployment by allowing inflation to average 2% with short periods below and above the target. A key indicator of economic strength for the US this week will be the monthly job numbers as the initial jobless claim was over one million.
  • Equity markets rose 2% this week as the S&P500 and NASDAQ are up 3% driven by tech stocks.
  • Regarding Covid-19, the service industry is showing growth in China signaling hope for Western countries. However, European numbers of Covid-19 has risen as schools opened this week. 

 

Tags
Contact Us
Warning: Nothing presented on this website constitutes investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any person. You should not act on it in any way and are advised to obtain professional advice suitable to your own individual circumstances. The value of your investment may go down as well as up. You may lose some or all of the money you invest. Past performance should not be taken as an indication or guarantee of future performance; neither should simulated performance. The value of securities may be subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities.