real-time news and commentary for investors
Wednesday, Oct 9
Yellen clearly best qualified for job, says Evans-Pritchard
- "The Fed will be looser for longer. The FOMC will continue to print money until the US economy creates enough jobs to reignite wage pressures and inflation, regardless of asset bubbles, or collateral damage along the way," says a giddy Ambrose Evans-Pritchard of the Yellen nomination.
- The "dove" label is unfair, says Pritchard. Yellen pushed for pre-emptive hikes in the mid-90s as Greenspan fed the stock market bubble.
- Ahead of the financial crisis, she was quicker to sense the systemic risk of the subprime crash than the rest of the FOMC. And after: "Fighting a chorus of amateur alarmists who claimed that inflation was poised to take off," Yellen was an early and enthusiastic backer of QE.
- A key Yellen speech from earlier this year requires study, says Pritchard, as it shows she's paying attention to the falling labor force participation rate, i.e. a headline UE print of 6.5% may not hold much "tightening" sway with her.
- Emerging markets - which took a major hit from taper talk - may be set to benefit the most from a the longer and looser policies of Janet Yellen.
- Overnight: India gained 1.3%, Shanghai gained 0.6%, and southeast Asia posted a nice advance.
- Emerging market ETFs: AGEM, EEM, ADRE, SCHE, GMM, VWO, DEM, EWEM, PXH, PIE, EWX, DGS, EMLB, EDC, EET, EMSA, EDZ, EEV, EUM, TLTE, HILO, EELV, EEMA, EMFT, DVYE, FEMS, EVAL, EGRW, EMCR, IEMG, EMDR, EEME.
- India and China: INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMIN, FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.
- Seasia: EIDO, IDX, IDXJ, EPHE, THD, TTF, TF.