Vanguard Global Chief Economist Joe Davis discusses signs of a possible Fed interest-rate hike but cautions investors to consider possible long-term market and economic implications.
Vanguard Global Chief Economist Joe Davis looks to the Fed’s December 2016 meeting and says while news on interest rates will likely grab the headlines, it’s important to also focus on the long-term implications on the markets and the economy.
Faced with alarming headlines, we must maintain reasonable expectations and remain focused on our clients’ goals. Consider three episodes from the first half of 2016.
Monetary policy is reaching its limits, but global growth remains frustratingly fragile. Our chief economist says the best path forward differs by region.
Since 1871 the correlation between changes in stock prices and changes in bond yields has averaged 0%. Over the past five years, our chief economist writes, the correlation has averaged –0.6%, the lowest in U.S. history.
Although the risk of a recession is low, the U.S. economy is likely to experience “growth scares.” Joe Davis offers insights that can help clients keep things in perspective.
Do subdued growth expectations require a policy response? Take a closer look and you’ll find 2% growth is neither new nor subpar. Rather it’s sustainable and healthy.