{"id":171991,"date":"2020-06-11T10:10:23","date_gmt":"2020-06-11T14:10:23","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=171991"},"modified":"2020-06-11T08:04:17","modified_gmt":"2020-06-11T12:04:17","slug":"the-feds-commitment-investors-will-move-to-top-up-portfolios","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/06\/the-feds-commitment-investors-will-move-to-top-up-portfolios\/","title":{"rendered":"The Fed\u2019s commitment: Investors will move to top-up portfolios"},"content":{"rendered":"
June 11, 2020<\/div>
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By George Prior<\/strong><\/p>\n

Investors will move to further top-up their investment portfolios following the U.S. Federal Reserve\u2019s first meeting since last year and since the Covid-19 crisis gripped the global economy, affirms the CEO of one of the world\u2019s largest financial advisory and fintech organizations.<\/p>\n

The comments from deVere Group\u2019s Nigel Green follow the Fed\u2019s meeting on Wednesday at which they said they would hold rates the same at near-zero for some time to help boost an economic revival.<\/p>\n

Mr Green notes: \u201cIt was expected that rates would stay the same and the U.S. central bank\u2019s decision was unanimous on this.<\/p>\n

\u201cThe focus was on Chairman Jerome Powell\u2019s statement that followed after.<\/p>\n

\u201cIn a press conference he said that the pandemic \u201cweighs heavily\u201d on the American economy \u2013 the largest in the world \u2013 and that the Fed would do \u201cwhatever we can, and for as long as it takes\u201d to support the recovery and \u201climit lasting damage\u201d to the economy.<\/p>

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\u201cAgainst this backdrop, further stimulus can be expected from the Fed – and also perhaps from Congress too – in the near future as the economic revival will be a longer process than many had hoped.\u201d<\/p>\n

He continues: \u201cThis \u2018backstop\u2019 from the Fed slashes the threat of a second market slump even if economic data comes in worse than next quarter.<\/p>\n

\u201cIt provides something of a \u2018floor\u2019 for equities.<\/p>\n

\u201cAs a result of this, investors will be seeking to further top-up their investment portfolios to get ahead at lower entry points, before the hike in values that would kick-in with another round of stimulus.\u201d<\/p>\n

Mr Green\u2019s message, however, comes with a warning too.\u00a0 \u201cTo many, the stock markets have seemed out of step with the bleak economic data recently.<\/p>\n

\u201cBut it could also be the case that they are giving us clear signals for the current and future shape of the economy, in which there are and will be distinct winners and losers, unlike in other recessions.<\/p>\n

\u201cA good fund manager will help investors seek out the opportunities and mitigate potential risks as and when they are presented to generate and build their wealth.\u201d<\/p>\n

The deVere CEO concludes: \u201cThe Fed believes the economic outlook for the rest of this year will be tough. But it will continue to purchase government-backed debt \u201cat least at the current pace\u201d and the markets believe this will be further increased in order to maintain smooth market function.<\/p>\n

\u201cThis will support and likely boost asset prices moving forward. Investors will now be eyeing the opportunities before any fresh or enhanced stimulus packages are announced.\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","protected":false},"excerpt":{"rendered":"

By George Prior Investors will move to further top-up their investment portfolios following the U.S. Federal Reserve\u2019s first meeting since last year and since the Covid-19 crisis gripped the global economy, affirms the CEO of one of the world\u2019s largest financial advisory and fintech organizations. The comments from deVere Group\u2019s Nigel Green follow the Fed\u2019s […]<\/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-171991","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/171991","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=171991"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/171991\/revisions"}],"predecessor-version":[{"id":171992,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/171991\/revisions\/171992"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=171991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=171991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=171991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}