/perspectives/media/consequences-of-the-feds-bill-buying-program

The Consequences of the Fed’s Bill Buying Program

From Davos, Scott Minerd, Chairman of Investments and Global CIO, stops by Bloomberg to discuss monetary policy, asset prices, and markets.

January 22, 2020

 

Key Takeaways:

  • Monetary policy operates bubble-to-bubble, in corporate America today, that bubble is in corporate credit.
  • One of the biggest mistakes asset managers make is engaging in too many tactical trades. Smart money stays the course in favor of short-term tactical moves.
  • Asset prices go up in an escalator and down in an elevator, investors should be wary of the Fed’s willingness to pump liquidity into the system
  • With excess liquidity and central banks in Europe and Asia running negative interest rates the incremental structure of yields continues to compress risk assets.


Read Global CIO Outlook: Global Central Banks Fueling a Ponzi Market


FEATURED PERSPECTIVES

September 21, 2020

Guggenheim’s 2020 Election Portfolios

Our portfolios are constructed based on the key aspects of each candidate’s policy agenda that we believe will move markets. We will publish daily updates in the run up to the presidential election on Nov. 3, 2020.

August 19, 2020

The Impact of the Fed’s Corporate Credit Facilities

As a result of the Federal Reserve’s efforts to shore up credit markets, the leveraged credit sector has delivered stellar performance since the lows in March.

July 29, 2020

China Matters More Than Ever

Cooperation and understanding between China and United States is vital as global economic and environmental challenges mount.


VIDEO

Third Quarter Outlook 

Third Quarter 2020 Outlook

Brian Smedley, Head of Macroeconomic and Investment Research, and Portfolio Manager Steve Brown share their outlook for the third quarter 2020.

2020 Macro Themes 

Macro Themes for 2020

Brian Smedley, Head of Macroeconomic and Investment Research, discusses major trends likely to shape markets this year.







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