It was no surprise that Federal Reserve officials decided to hold interest rates steady on Wednesday. But what they said about global conditions—and didn’t say about the inflation outlook—leads us to believe they may not pull the trigger in March, either.
Market sell-offs can be unsettling. But it’s important to keep them in perspective. The recent downturn in some credit markets is normal, given where we are in the credit cycle. It’s not evidence of a bursting bubble.
The liberalization of China’s currency and capital account is under threat as the renminbi (RMB) falls, capital outflows intensify and foreign reserves dwindle. Will the country forge ahead with its reforms or pause to allow the market to settle down? Both, in our view, have their pros and cons.
The calendar has changed to 2016, but the volatility story remains. The key concern: weaker global growth and its possible ripple effects, including low oil prices for an extended period. How should investors approach this challenge?
China’s economy may be slowing down, but consumers haven’t stopped spending. Internal migration trends may partly explain the conundrum—and are often hidden from government statistics.
Global :: The global economic outlook remains uneven. Our growth estimates for 2016 stand at 2.7%, up marginally from the estimated gain of 2.6% in 2015. The risks to the outlook are nearly balanced, and worries about China’s economy are the biggest wild card.
US :: The severe drop in equity prices has raised concerns of recession risks in the US. While financial market corrections typically follow economic downturns, they do sometimes precede them. A review of today’s key economic variables suggests to us that the economic growth cycle remains on track. However, continued financial market disorder would pose a risk to the expansion at some point.
Alpha Fund Managers has become the initial investor in the AllianceBernstein Global Equities Fund, adding the fund to their portfolio.
The AllianceBernstein Managed Volatility Equities Fund has received a ‘Recommended’ rating from investment research house Lonsec.
Tassos Stassopoulos, who manages the AllianceBernstein Emerging Consumer Fund, discusses the strategy with the Insto Report