Good News Worries
Posted on June 18, 2013
ARE INTEREST RATES GOING TO GO UP?
The markets have seemed very nervous the last few weeks. The reason is the discussion on “tapering” of the US Federal Reserve’s quantitative easing which has been helping keep interest rates down and money plentiful.
Here is what we think is going on…
We have a couple of quick points to make.
- The Federal Reserve is not likely to increase rates soon. Probably next year.
The history from 1994 is not too bad, equities bounced back quickly.
Having said that, a few words of warning.
- The US equity markets have had a good run the last 7 months. A correction is due at some point.
- The problems in Europe haven’t disappeared, just postponed and a fix doesn’t appear imminent.
- Japan’s climb from the quagmire seems to have stalled, at least for the moment.
Still, overall, it pays to keep in mind that a return to normality is to be expected at some point pretty soon and that is wholly a good thing in the long term. It signifies the crisis is drawing to a close, finally.
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About Caterer Goodman Partners
Caterer Goodman Partners is a Shanghai based wealth management firm established with a clear vision to provide a new level of personalized financial planning services for expatriates in Asia. Our financial advisors provide guidance for our clients in all areas of investment, specialising in managed accounts, money-market funds, retirement planning and alternative investments. At Caterer Goodman Partners, we offer our advice and experience to provide low cost, tax-effective and simple solutions to match our clients’ interests.
About Owen Caterer
Since graduation Mr Owen Caterer has worked with the Queensland Premier's Department in Trade Facilitation and then as a financial adviser in Shanghai from 2005 until 2010. He then rose to Senior Adviser, then Business Development manager and then to Chief Investment Officer responsible for portfolios to a value of US$280 million across Asia. Following that Mr Caterer left to found his own firm with a partner in the financial advisory and wealth management area. This focused on developing China and Asia's first fee-based financial advisory (rather than commission-based). This has grown to now have 8 staff and and managing almost US$35 million for clients throughout Asia. This business success was recognized as a finalist in the 2013 ACBA in the Start Up Enterprises category and are one of a small number of foreign managed firms to have a full asset management license in China. Owen has also been active in the community volunteering for the Australian Chamber of Commerce in Shanghai and acting as the Vice-Chair of the Small Business Working Group (2012-2014) and as the Co-Deputy Chair of the Financial Services since 2013 until the present. They have continued to grow their business and have now been selected as a small group of companies who are platinum members of the Australian chamber of commerce. The achievement they are most proud of is their efforts to reform the financial planning industry in China and push it away from a hard-sales commission driven model to a more ethical management fee and long term customer service model. Owen has a Graduate Diploma of Applied Finance from the Securities Institute of Australia of which he was a member as a Fellow of Finance for many years and also has an undergraduate degree from Griffith University in International Business. Owen's interests are tennis, running and his wife and two children. He speaks fluent Chinese, first arriving in China in 1997.
Tags: Caterer Goodman, China, Equity, Expat, Federal reserve, Investment, Market, Money, Owen, Owen Caterer, quantitative easing, Shanghai, US
Categorised in: Global Markets, Market Flash