8 Jul 2013
Flash: five characteristics - BBH
FXstreet.com (London) - The Global Currency Strategy Team for BBH said there are five main characteristics of the global investment climate.
One, they said, the Federal Reserve has begun a protracted exit from the extraordinary monetary policy; while, two, other major central banks are not ready to follow suit. They said this is encouraging 3) an unwind of structural positions, that were predicated on low US interest rates, and 4) the replacement of the dollar as a funding currency, which is leading to 5) portfolio adjustments away from fixed income, emerging markets and some commodities, including precious metals. They said the dollar, US and Japanese equities are favoured by investors.
One, they said, the Federal Reserve has begun a protracted exit from the extraordinary monetary policy; while, two, other major central banks are not ready to follow suit. They said this is encouraging 3) an unwind of structural positions, that were predicated on low US interest rates, and 4) the replacement of the dollar as a funding currency, which is leading to 5) portfolio adjustments away from fixed income, emerging markets and some commodities, including precious metals. They said the dollar, US and Japanese equities are favoured by investors.