That decline would be easy. by Scott Minerd

That decline would be easy.

Scott Minerd

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Categorized in : Business

As the Fed begins its easing campaign to try to extend an already long-in-the-tooth expansion, credit spreads are already tight across the fixed-income spectrum, credit spreads could get tighter in this liquidity-driven rally, but history has shown that the potential for widening from here is much greater.

The discussion focused on the need for a German champion but what Europe needs is a European champion.

The only hope Europe has in the near term is to kick the can down the road and try to keep the experiment going.

It is impossible to get the timing of anything exactly right. You have to ask yourself, 'Are you a speculator or an investor?' we are investors and we believe it is a pretty good period to start nibbling on Treasuries.

We purchased long-duration, high-quality agencies. by Scott Minerd

We purchased long-duration, high-quality agencies.

The ongoing market turmoil puts further rate hikes by the Federal Reserve on hold and increases pressure on China to make radical adjustments, such as a rapid devaluation of the Yuan to spur growth in domestic export industries, while these policy moves are likely to cause violent swings in prices for risk assets, it could accelerate global rebalancing, allowing growth to stabilize while buying more time for an orderly restructuring of global debts.

As the Chinese economy continues to slow, a large portion of this debt will become impossible to service.

The Fed is anxious to get started, if it were to move I think it would go out of its way to say ... there's no rush to do anything else.

If it were to move I think it would go out of its way to say ... there's no rush to do anything else, if it doesn't, it will refer to the market turmoil, and say that ... a rate increase is inevitable.