{"id":155680,"date":"2019-09-18T14:26:41","date_gmt":"2019-09-18T18:26:41","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=155680"},"modified":"2019-09-18T14:26:41","modified_gmt":"2019-09-18T18:26:41","slug":"a-divided-u-s-fed-means-that-investors-need-to-stay-fully-diversified","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/a-divided-u-s-fed-means-that-investors-need-to-stay-fully-diversified\/","title":{"rendered":"A divided U.S. Fed means that investors need to stay fully diversified"},"content":{"rendered":"
September 18, 2019<\/div>
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By George Prior<\/strong><\/p>\n

Today\u2019s rate cut and the accompanying statement from the U.S. Federal Reserve mean that investors must stay fully invested and diversified if they\u2019re serious about building and safeguarding their wealth, warns the boss of the world\u2019s largest independent financial advisory organization.<\/p>\n

The warning from Nigel Green, founder and CEO of deVere Group comes as the U.S. central bank cut its main interest rates by 25 basis points on Wednesday – but it held back from signalling more cuts could be on their way in December.<\/p>\n

Mr Green notes: \u201cThe rate cut was widely expected given deflationary pressures driven by the recent weak U.S. manufacturing data, the simmering trade tensions with China and the mounting geopolitical issues in the Middle East.<\/p>\n

\u201cThe real interest, however, was in the accompanying statement over future rates.<\/p>\n

\u201cThere\u2019s much uncertainty amongst economists, and within the Fed itself.\u00a0 It\u2019s an unusual environment.<\/p>

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\u201cDespite immense pressure from President Trump to cut rates further, to provide rocket fuel to the economy ahead of next year\u2019s election, the Fed appears conscious that the labour market is tight and fears wage inflation will kick in.<\/p>\n

\u201cAlso, with the U.S. economy experiencing around 2 per cent growth, which is fairly decent, the Fed is exercising caution over further precautionary rate cuts at this time.\u201d<\/p>\n

He continues: \u201cStock markets wanted the Fed to err on the side of caution and promise more cuts and, as such, markets may fall accordingly.<\/p>\n

\u201cThe U.S. dollar had today\u2019s rate cut priced-in, but will rise on the Fed\u2019s silence over future cuts.\u201d<\/p>\n

Mr Green goes on to conclude: \u201cWith a divided U.S. central bank, investors must stay fully invested and diversified if they\u2019re serious about building and safeguarding their wealth.<\/p>\n

\u201cAs ever in times of volatility, there are winners and losers, opportunities and risks.<\/p>\n

\u201cA good fund manager will help investors best position themselves in this regard.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior Today\u2019s rate cut and the accompanying statement from the U.S. Federal Reserve mean that investors must stay fully invested and diversified if they\u2019re serious about building and safeguarding their wealth, warns the boss of the world\u2019s largest independent financial advisory organization. The warning from Nigel Green, founder and CEO of deVere Group […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-155680","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=155680"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155680\/revisions"}],"predecessor-version":[{"id":155681,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155680\/revisions\/155681"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=155680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=155680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=155680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}