Seriously renewed carnage – likely lies in-wait for market’s, although there are a few possibilities suggesting the more-dire aspects on-hold into early 2016. Of course that’s not a lock, as we’re in for a spate of ‘wild volatility’ immediately, as both bull and bear alike will agree for the ‘wake’ of the FOMC’s most-awaited if overplayed decision in years.
The Federal Reserve has had a great deal of difficulty sorting the divergence or varying states (and even within segments) of the economy versus the corporate sector, as what the Fed’s assist to facilitating funding primarily to do buybacks, has done ‘to’ shareholders (rather than ‘for’, beyond the short-term benefits of buybacks earlier this year). That alone is a structure that won’t dominate 2016; so combine the waning buybacks with snugged-up policy; that’s not bullish.
This Fed ‘must’ worry about financial markets even if not an official mandate; of course because their overstayed expansive policies slowed recovery (counter a perception of lifting all boats), drained capital from productive use, and pressed an entire generation of Senior Citizens into chasing yield rather than conserving funds and avoiding increased risk burdens which they (sometimes inadvertently if they don’t understand the downside of strictly pursuing yield) took on.
The danger for the Fed might be that (for much of the Nation) the economy on the surface looks sort of OK (like NY and San Francisco for instance); while at the same time multiple maintenance would require faster growth that’s not yet in the cards, and is actually throttled by our forecast stronger Dollar overall (at the same time interim consolidations, not declines of substance, occur).
While a weaker Euro helps Europe get on its feet despite the incredible debate about a preservation of national borders versus Southern EU ‘ring-fence’ border control and various social disintermediations humanitarian but dangerous open refugee policies has brought (Europe had these problems already; but control in a sense has been lost by the numbers already inserted but not assimilated in a majority of larger EU member states). The firmer policies distance immigrants to degrees from general populations, but governments must try regaining some control or semblance of order from this partially intended invasion .. because IS likely knew and planned for their brutality to push people into Europe, with their efforts to infiltrate terrorists not just those vulnerable to radicalization as well.
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