Opportunities are presented this week based on the latest statements from the Fed. The recommendations, in What We Do with the Weights (A24).
By iProfessional
12/05/2023 – 17,38hs
The big news last week had to do with the 0.25% rise in the bowl interest rate of the Federal Reserve of the United States, which was already anticipated by the markets.
Paula Bujía, investment adviser, explained in the program What we do with the Pesos (A24) that we must pay attention to the statements of Jerome Powell, president of the Federal Reserve System, who announced that it will put a pause on the increases that have been made lately, at a time when inflation is falling in the United States at the same time that some recessive effects are beginning to be felt due to the convenience of current rates.
High interest rates in relation to the dollar will be maintained for a longer time than initially expected. This indicates that some other type of complication would be expected at some point in the economy, in line with the precedent presented by the bankruptcy of several US regional banks, but not only in that sector but also in real estate developers.
Los short-term treasury bonds today they are presenting a considerable reinvestment risk, since when these bonds mature the rates could later be lowering; whereby It is advisable to extend the duration in fixed income.
Having fallen a lot oil price and noticing a certain delay in the implementation of the ecological agenda that would replace it, the producers of this commodity are an attractive option for the medium term.
Economic movements in giants such as China and India show South Korea, Indonesia or Vietnam with a growth of the middle class that could boost consumption; among other indicators that position an eventual Asian investment as interesting, through instruments that do not directly expose us to the geopolitical complexities in which Beijing holds its country.
