Richard Woolnough’s views on the U.S. economy and bond markets. A video.

By Wolfgang Bauer

In the second part of the video from our recent New York research trip, M&G’s Richard Woolnough takes a look at three more topics. Firstly, the U.S. labour market is strong and inflationary pressures are building. The Federal Reserve is currently on hold due to external events, but maybe not for long. Secondly, while the lower oil price by and large is beneficial for Western economies, bond valuations in certain business sectors have clearly suffered, creating interesting investment opportunities. And finally, given the Presidential race is probably going to be Trump versus Clinton, bond market uncertainty and risk premiums could well be higher than we are normally used to during a Presidential election campaign.

 

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Wolfgang Bauer

Job Title: Fund Manager

Specialist Subjects: Investment grade credit (and the mysteries of microfluidics…)

Likes: Football, scuba diving and jiangsu cuisine

Heroes: Alfred Wegener, Charles Darwin and Stanislav Petrov

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