The Fed and its new chairman, Jerome Powell, are at the beginning of what could likely be a sustained period of tightening as the markets unwind past years of soft money policies. The import of this shift cannot be underestimated.
Companies and individuals are going to have to analyze the changing market landscape
carefully to ensure they fully understand the risks and opportunities. Rising geopolitical and trade tensions, as President Trump seeks to impose $50 billion in tariffs on China alone, make this more challenging than ever before. The resulting increase in volatility will make the test for managements that much tougher.
The currency markets may be the first barometer of rising tensions. Traders react swiftly to economic news, selling one currency and buying another. Despite President Trump’s desire to see a strong dollar, rising fiscal and trade tensions could roil the greenback in the coming months. Adding to the pressure, the increasingly empowered Chinese central bank is expected to make its influence felt, especially with its neighbors in its regional markets.
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Tom Kutzen has more than thirty years experience in the financial markets working across many markets working with all types of participant investors and many luminaries of the financial world. Tom is now sharing his years of experience in the capital markets with individuals and organizations outside the financial services industry in order to help them develop the skills necessary to further their own financial education, financial literacy and economic success. The information in TKSmartworth will cover categories ranging from Volatility; Economic Growth, Trade & Inflation; Equities; Bonds; Currencies; Derivatives; Participants; Central Bank Policy; and more.