Gary Schlossberg, Global Strategist at Wells Fargo Investment Institute, shares his views on central bank policy. He points out that the trajectory of the Japanese yen will depend in part on statements by the Fed and its Chairman, Jerome Powell. If the Fed keeps its monetary policy unchanged, this could limit any appreciation of the yen. If the Fed hints at a rate cut early next year, this could be interpreted as easing and welcomed by the markets. However, he notes that the US economy is losing momentum and it remains uncertain whether this will lead to a recession or a soft landing. 

For portfolio management, Schlossberg continues to favor the US market, focusing on quality, strong balance sheets and earnings resilience in the event of a slowdown, with large-cap stocks and a focus towards healthcare, basic materials and industrials.

 


(MT Newswires)

Bloomberg videos