“While a possible recession is looming on the horizon and the crush of inflation can still be felt throughout the US, many investors might be well-advised to stay cautious of US stocks and bonds at the moment”, says Richard Cayne of Meyer International.
The Federal Reserve’s capacity to orchestrate a soft landing as officials work to reduce inflation by raising rates without causing a recession has been incorrectly given the benefit of the doubt by the stock market, which just ended its best month since November 2020.
Following the worst six-month start to a year since 1970, the S&P 500 increased by 4.3 percent for the week and by 9.1 percent in July.
The Federal Reserve signaled that the rate hike pace may moderate later this year and stock gains exploded this week.
A total of 2.25 percentage points have been added to the central bank’s target rate so far in 2022, including 75 basis points this week.
Bond prices increased as well; 10-year Treasury rates ended the week at 2.65 percent, which is lower than their peak of 3.47 percent reached in June.
What to expect moving forward
Some of the largest hedge funds in the world have a gloomy outlook and predict declining bond prices as the Fed reduces its balance sheet, floods the market, and is compelled to raise interest rates further to contain inflation.
“We anticipate seeing a negative 2, negative 3 percent US GDP within the next six to nine months”, says Richard Cayne.
The US economy’s weakness may offer investors chances as other currencies are expected to strengthen versus the dollar.
Investors should think about equities denominated in the euro, says Richard Cayne, despite the fact that Europe is anticipated to see a difficult winter as it deals with an energy problem brought on by Russia’s conflict with Ukraine.
So far this year, the euro has lost nearly 10% of its value relative to the dollar.
“Travel to areas with weaker currencies”, advises Richard Cayne. “Starting with the euro might be a smart idea.”
Richard Meyer Cayne
Richard Meyer Cayne of Asia Wealth Group Holdings, the Meyer Group, Meyer Asset Management and Meyer International Ltd has been involved in wealth management planning for decades. Originally born in Montreal Quebec, Canada, he later relocated to Tokyo, Japan for over 15 years and now resides in Bangkok, Thailand. While he runs the Meyer Group and serves as the high credibility CEO of Asia Wealth Group Holdings Ltd, a London, UK Stock Exchange-listed Financial Holdings Company, as well as the Managing Director of the Meyer Group of Companies www.meyerjapan.com. and has additionally been the managing director of multiple organizations that specialize in helping high net worth individuals with succession planning .
Having worked with clients all over the globe with everything from portfolios to bonds to mutual funds to offshore investing to investing in retirement for your golden years, Richard Cayne of Meyer International can help you invest the right way and protect your cash. Richard has been a financial advisor involved in wealth management planning solutions and asset management in Asia for over 25 years and while living in Tokyo, Japan, he assisted many high net-worth Japanese families create innovative international tax and wealth management planning solutions. The financial holding public company of which he is CEO can be seen at Asia Wealth Group Holdings Ltd or the stock exchange link:
https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=AWLP
Asia Wealth Group Holdings Ltd – Richard Cayne Thailand. Meyer Asset Management Ltd has been in the wealth management space since March 2000 and uses fundamental analysis along with modern portfolio theory.
His image worldwide as a professional advisor has been sterling and he maintains a firm command and understanding of all things finance-related.
