Thoughts From Around the Investment World – 3

We thought that our readers would be interested in reading the thoughts of some of the leading money management companies. We get information from these companies on a regular basis, and wanted to start passing some of it along. Today we look at the view from the money management shop Neuberger Berman.

Complex Trends, Challenging Markets

The complexities of today’s markets and economies are not lost on those who spend each day sorting through them. Diverging monetary policy, plummeting energy prices and shifting economies are all examples of fundamentals on which our investment professionals are focused. These issues have been debated for the better part of 2015 and have led to a very turbulent period for the markets, both equity and fixed income. [The] past year [2015] will shape up as one of the more challenging in recent memory.

As we enter 2016, the issues of stagnant global growth, monetary policy and China’s bumpy economic transition that have roiled markets will continue to be a major focus, the outcomes of which will likely drive market returns. We believe the Federal Reserve will take a slow approach to rate increases, that the ECB [European Central Bank] will remain accommodative as necessary, and that China has the financial wherewithal to avoid a severe “hard landing.” As for low commodity prices, they are largely supportive for now, but eventual increases are likely to come for the right reasons, reflecting broader economic health and proper supply/demand balance.

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