News | Forex Optimum

News

News

Blackstone warns of a ‘lost decade’ where stock market returns are ‘anemic’

CNBC reports that Blackstone’s Executive Vice Chairman, Tony James, told that the coming years could be a “lost decade” for equity returns as companies struggle to grow their earnings.

James told that stock prices may not rise further after becoming fully valued over a “five- to 10-year horizon.”

“I think this could be a lost decade in terms of equity appreciation,” he said, referring to a term commonly used to describe a period in the 1990s when Japan experienced economic stagnation. 

He explained that current low interest rates may not dip further and may instead rise to more normal levels in the coming years.

In addition, companies will face “plenty of headwinds” that put pressure on earnings, he said. That includes higher taxes, increase in operating costs, less efficient supply chains and “deglobalization” that will hurt productivity, explained James.  

You may also be interested:

18:14 25.09.2020
Goldman Sachs picks EM currencies to back when "the dust settles" - CNBC
CNBC reports that Goldman strategists suggested in their note Thursday that while it may be too early to engage with high-yield emerging market (EM) bets, with risks still prevalent and the dollar on the move, it is not too early to start thinking systematically about opportunities once the crisis subsides. They identified the Mexican peso (MXN) as the most attractive among “high cyclical beta, high carry longs.” It was closely followed by the South African rand (ZAR) and Russian ruble
17:37 25.09.2020
Italy to raise budget deficit target to about 12.8% of GDP from 11.9% in August - Reuters reports, citing sources
To target 2021 budget deficit at 7%To raise debt-to-GDP target to 160% from 157.6% in August; to aim to lower it to 156% in 2021To set 2021 GDP growth target at 6%, up from 4.7% in April
17:22 25.09.2020
U.S. Durable Goods Orders: Core orders point to capex recovery continuing - Wells Fargo
FXStreet notes that the U.S. Durable Goods Orders report released on Friday showed an increase of 0.4%, below expectations. Analysts at Wells Fargo point out the slowdown in core orders was more gradual and shows the capex recovery continues.“Durable goods orders slowed sharply in August, increasing just 0.4% after an upwardly revised gain of 11.7% in July. The downdraft stemmed in part from a 4.0% drop in motor vehicles as pent up demand from shutdowns shows signs of exhaustion.”“The rise in
Deposit
options
Trading
platform
download
Bonuses VIP