{"id":165976,"date":"2020-03-05T10:15:55","date_gmt":"2020-03-05T15:15:55","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=165976"},"modified":"2020-03-05T07:18:42","modified_gmt":"2020-03-05T12:18:42","slug":"new-era-of-negative-rates-looming-investors-move-to-top-up-portfolios","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/03\/new-era-of-negative-rates-looming-investors-move-to-top-up-portfolios\/","title":{"rendered":"New era of negative rates looming? Investors move to top-up portfolios"},"content":{"rendered":"
March 5, 2020<\/div>
\r\n<\/div><\/div>

By George Prior<\/strong><\/p>\n

A fresh era of negative interest rates is looming and investors are now seeking to top-up their portfolios with equities, says the CEO of one of the world\u2019s largest independent financial advisory organisations.<\/p>\n

Nigel Green, the deVere Group chief executive and founder, is speaking out after the U.S. Federal Reserve\u2019s emergency rate cut on Tuesday \u2013 the first since the 2008 financial crash \u2013 as it tries\u00a0to limit the economic impact of the coronavirus outbreak.<\/p>\n

Mr Green affirms: \u201cThere\u2019s been one historic cut already and there are signals that the Fed \u2013 the world\u2019s de facto central bank \u2013 will make deeper cuts imminently.<\/p>\n

\u201cAs it scrambles to protect the U.S. economy from the far-reaching fallout of the coronavirus, it can be expected that it could take rates back down to zero \u2013 emergency territory – in the next few months.<\/p>\n

\u201cThis then raises the spectre that the Fed will ultimately follow its peers in Europe and Japan by adopting negative interest rates.\u201d<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

He continues: \u201cThere is much debate and scepticism regarding the effectiveness of slashing rates in response to a global public health crisis and the resulting market turmoil.<\/p>\n

\u201cNegative rates can be misinterpreted by the public. They have been viewed as a warning to consumers and investors, that the underlying economies are in a dangerously weak position, and hit investor and consumer demand.\u201d<\/p>\n

Mr Green continues: \u201cHowever, while the jury is out on whether negative interest rates help the real economy, there is no doubt that they help boost financial asset prices.<\/p>\n

\u201cAs such, with coronavirus possibly ushering in a fresh era of negative interest rates, investors are now seeking to top-up their portfolios with equities before the next round of cuts and the likely subsequent price jump. They are seeking the\u00a0lower entry points before the market surge.<\/p>\n

\u201cThose with savings in the bank are already getting battered by the ultra-low interest rates they are getting,<\/p>\n

\u201cNegative rates will give more investors more reason to increase their exposure to equities.\u201d<\/p>\n

The deVere CEO concludes: \u201cThere question mark remains on whether cutting rates from their already low levels will solve the issues created by the coronavirus outbreak.<\/p>\n

\u201cBut rate cuts \u2013 and it is likely there will be deeper ones to come \u2013 will push up financial asset prices and right now many investors are looking to get ahead of the curve on this.\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.<\/em><\/p>\n

 <\/p>\n

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

By George Prior A fresh era of negative interest rates is looming and investors are now seeking to top-up their portfolios with equities, says the CEO of one of the world\u2019s largest independent financial advisory organisations. Nigel Green, the deVere Group chief executive and founder, is speaking out after the U.S. Federal Reserve\u2019s emergency rate […]<\/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-165976","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165976","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=165976"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165976\/revisions"}],"predecessor-version":[{"id":165977,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165976\/revisions\/165977"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=165976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=165976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=165976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}