The International Channel

Assumptions Not to Make After the March Fed Hike

With two more Fed hikes potentially on the horizon in 2017, Rick clears up a few wrong assumptions some market watchers are making about rate normalization.

Bring On Brexit

The British government is set to invoke Article 50 of the Lisbon Treaty next week, formally signaling its intention to separate from the EU.

Strategist: Keep Calm, Tax Reform Is On Its Way

Regardless of its failure to be repealed, tax reform is on its way. Just today, Treasury Secretary Steven Mnuchin reassured Americans that we could still expect “comprehensive” tax reform by August. It’s also worth recalling that, even though he failed to reform health care during his eight years in office, President Bill Clinton still managed to tackle tax reform with the Omnibus Budget Reconciliation Act of 1993.

Why Things Aren’t What They Used to Be in Emerging Markets

The prospect of stabilizing commodity prices and improving corporate earnings has helped rebuild investor interest in emerging markets over the past year. But returning investors may find the constituents of today’s emerging markets are very different from those of the past.

Lithium Suppliers Can’t Keep Up with Skyrocketing Demand

Near the extinct volcano known as Monte Pissis, high in the Andes on the Chile-Argentina border, the air is thin and animal life scarce. It’s also a prime location for lithium, the silvery-white metal used in the production of lithium-ion batteries.

Fund Managers Become Bullish

A tailwind for the rally over the past year has been the bearish positioning of investors, with fund managers persistently shunning equities in exchange for holding cash. 

Allianz Global Investors’ House View on Brexit

The UK’s triggering of Article 50 on March 29 is like firing the starting pistol on the process of leaving the EU – but this race will be slow and tortuous. Here is our view on what investors should expect and how they should prepare.

America’s New Emphasis on Fiscal Policy

For the third time in two years, the Federal Reserve lifted interest rates 0.25 percent last week following the previous week’s phenomenal jobs report. The move was seen as more dovish than many market analysts had anticipated. BCA Research went so far as to call it an “unhike,” citing a number of factors, including forecasts of only three rate hikes in 2017 instead of four.

S&P 500 Snapshot: Biggest Loss in Five Months

Today's S&P 500 opened at its daily high and proceeded to tumble throughout the day, ending the selloff with a 1.24% loss, its largest since October.

Bogged Down…

I know that I am not the only one feeling it. You can see the increasing risk in the markets and uglier action on the tape. Credit is seeing selling even as recession fears are distant. Bank stocks are rolling over even with the Fed raising interest rates.

Scaling It Back

We expect the global economic expansion to strengthen and broaden over the cyclical horizon, but with improved growth and inflation prospects, central banks may scale back accommodation.

Risk: What Really Matters

Recent months have been unusually eventful, characterized by a swing in the global political landscape, U.S. dollar strength, geopolitical flash points, demonetization in India and military coups in Turkey (among many others), all feeding into general market nervousness and a significant rise in volatility. This was certainly the case in emerging markets.

"Blue Skies" Thinking in China

The Chinese leadership is now promising “to make our skies blue again” in a popular move to address an issue that has given rise to public protests across China against the industrial smog that blights so many cities. The solution to a pressing economic problem is now linked to an emotive popular issue.

Middle-Class Wage Stagnation Is a First-World Problem – The World is Getting Richer

A common lament during the presidential campaign was over middle-class income stagnation and the wealth of the top 1%. But are most people getting poorer while the rich get richer? In a sparkling – and delightfully short – new contribution to the econo-optimist genre, Johan Norberg, author of Progress: Ten Reasons to Look Forward to the Future, emphatically answers “no.”

To Hedge or Not to Hedge?

Although the value of a currency can impact your international holdings, Russ talks about when it makes sense to hedge that effect.