A Fed Rate Hike Might Be Good for Stocks, RBC’s Golub Says
2015-08-03 13:08:25.724 GMT
By Joanna Ossinger
(Bloomberg) -- U.S. stock valuations increase as rates rise
from below-avg levels historically over past 50-60 yrs; shape of
curve in response to liftoff probably matters more than timing,
RBC U.S. market strategist Jonathan Golub writes in note.
* “If central bank policy is of limited benefit, its removal
should do limited harm”
* Europe stocks “far more sensitive” to rate changes than
U.S. ones
* VIX doesn’t necessarily rise along w/ rates
* “If all this money printing mattered, you’d likely have
seen stronger GDP and inflation”
* Some point to Europe’s “recent success” w/ QE, though
data indicate “growth was simply reallocated from the
U.S. on the back of a weaker Euro”
* Fed hesitant to hike due to productivity collapse in U.S.,
globally
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To contact the reporter on this story:
Joanna Ossinger in New York at +1-212-617-7789 or
jossinger@bloomberg.net
To contact the editor responsible for this story:
Joanna Ossinger at +1-212-617-7789 or
jossinger@bloomberg.net
2015-08-03 13:08:25.724 GMT
By Joanna Ossinger
(Bloomberg) -- U.S. stock valuations increase as rates rise
from below-avg levels historically over past 50-60 yrs; shape of
curve in response to liftoff probably matters more than timing,
RBC U.S. market strategist Jonathan Golub writes in note.
* “If central bank policy is of limited benefit, its removal
should do limited harm”
* Europe stocks “far more sensitive” to rate changes than
U.S. ones
* VIX doesn’t necessarily rise along w/ rates
* “If all this money printing mattered, you’d likely have
seen stronger GDP and inflation”
* Some point to Europe’s “recent success” w/ QE, though
data indicate “growth was simply reallocated from the
U.S. on the back of a weaker Euro”
* Fed hesitant to hike due to productivity collapse in U.S.,
globally
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Joanna Ossinger in New York at +1-212-617-7789 or
jossinger@bloomberg.net
To contact the editor responsible for this story:
Joanna Ossinger at +1-212-617-7789 or
jossinger@bloomberg.net