By Yaser Anwar, CSC of Equity Investment IdeasI came across a really good post at Briefing.com pertaining to the US$ and economic outlook.According to PIMCO-“Carry trades will continue to support the dollar if-and only if-investors continue to establish new carry trades. But the Fed’s pause in August makes new carry trades increasingly unlikely.The Fed’s decision to pause likely marked the end of its rate hike cycle and the beginning of a path toward rate cuts. With the Bank of Japan and European Central Bank still in tightening mode, short-term interest rates should converge and reduce or eliminate the carry benefits of holding dollar assets.”A risk to this element of the case for a weaker dollar is the potential for stronger U.S. economic growth that leads the Fed to resume raising rates. However, we view this scenario as unlikely, primarily because of the ongoing slowdown in the U.S. housing market.Housing and housing-related activity has been a major source of liquidity and credit creation funding U.S. economic growth in recent years. Thus, the slowdown in housing will have a broad and deep impact on U.S. growth and is the primary reason we expect real U.S. GDP growth to fall below trend over the next 12 months.Slower growth in the U.S., particularly as other economies expand, should also contribute to a reduced foreign demand for dollar-denominated assets.”http://www.equityinvestmentideas.blogspot.com/
PIMCO’s US$ & Economic Outlook
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
Top Gaining Stocks
Top Losing Stocks