The Intelligent Investor Newsletter – October 18, 2016

Consultiva

A bi-weekly publication from Consultiva Internacional, Inc. (Registered Investment Adviser)

According to the International Monetary Fund’s 2016 revised outlook, global growth is projected to slow to 3.1 percent this year before recovering to 3.4 percent in 2017. The forecast, revised down by 0.1 percentage point for 2016 and 2017 relative to April, reflects a more subdued outlook for advanced economies following the June U.K. vote in favor of leaving the European Union (Brexit) and weaker-than-expected growth in the United States. These developments have put further downward pressure on global interest rates, as monetary policy is now expected to remain accommodative for longer. This somewhat explains the Federal Reserve’s continued resistance to raising the federal funds rate, even though the U.S. economy has been on a seven-year growth trajectory as seen in our previous newsletter through raising leading and coincident indicators. In her recent remarks at the IMF-World Bank Annual Meetings Plenary, IMF managing director Christine Lagarde said that “advanced economies remain stuck in a low-growth, low-investment, low-inflation cycle. And while growth in emerging markets is picking up, low-income commodity exporters are struggling with low prices”. For Lagarde the challenge is not just increasing economic growth, but that improvements worldwide are shared by all, what she calls inclusive growth; “We need growth—but we need inclusive growth. We need to transition to the digital age— but a transition that benefits everyone. And we need to accelerate now.” Lagarde challenges leaders to think about three potential solutions to local economies; increasing equal opportunity for women and for workers in need of retraining, sharing the economic public burden in proportion to resources, and preserving fair competition and access to market for all. How inclusive is economic progress in your backyard?

by Myrna Rivera, CIMA®
Founder & Chief Executive Officer

FURTHER READING AT CONSULTIVA INTERNATIONAL INC.

 

DISCLAIMER:

Consultiva is a Registered Investment Adviser. The registration with the Securities and Exchange Commission does not imply a certain level of skill or training. Consultiva has compiled the information for this report from sources Consultiva believes to be reliable. Sources include: investment manager(s); mutual fund(s); exchange traded fund(s); third party data vendors and other outside sources. Consultiva assumes no responsibility for the accuracy, reliability, completeness or timeliness of the information provided, or methodologies employed, by any information providers external to Consultiva. Conclusions reflect the judgement of Consultiva Investment Strategy Committee at this time and is subject to change without prior notice. There also can be no guarantee that using this information will lead to any particular result. Past performance results are not necessarily indicative of future performance. Diversification does not guarantee a profit or protection against loss. This document is for informational purposes only and is not intended to be an offer, solicitation, recommendation with respect to the purchase or sale of any financial investment/ security or a recommendation of the services supplied by any money management organization neither an investment advice or legal opinion. Investment advice can be provided only after the delivery of Consultiva’s Brochure and Brochure Supplement (ADV Part 2A and 2B) once a properly executed investment advisory agreement has been entered into by a client and Consultiva. This is not a solicitation to become a client of Consultiva. There are risks involved with investing including the possible loss of principal. All investments are subject to risk. Investors should make investment decisions based on their specific investment objectives, risk tolerance and financial circumstances. Global and international investments may carry additional risks that are generally not associated with U.S. investments, such as currency fluctuations, political instability, economic conditions and varying accounting standards. Annual, cumulative, and annualized total returns are calculated assuming reinvestment of dividends and income plus capital appreciation.

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