American stock index DOW rose 0.47%. This is the highest level since the end of December. Previously fed officials had expected a rate increase this year four times, however, this scenario does not look relevant. On Tuesday, the fed Chairman almost ruled out the possibility of a rate increase at the April meeting of the Committee on open markets FRS of the USA. Now this year we are expecting a rate increase twice. No illusions about the state of the U.S. economy to feed is not necessary. On Monday Atlanta fed gave its growth forecast for the US GDP of 0.6% in the first quarter. This is lower than previously estimated (1.4 per cent).
Bill gross, Manager of the bond market, the Director of the bond Fund Janus Global Unconstrained Bond Fund, says that Central banks in the world “no time” to stimulate their economies. Their aggressive policy – including quantitative easing and lower rates, sometimes even below zero loses its effectiveness.
In the April market investment (Investment Outlook) Grosz writes that the markets and based on a capitalist business model “will collapse” if not strengthen the growth of the economies of the leading countries of the world. “Income from capital gains and expectations on future income from capital gains will be similar to the giant Panda: they will be as rare and slow to reproduce,” said gross. According to gross “…the economy of developed and developing countries are in a state of free fall, and if not to raise the growth of nominal GDP, then the situation becomes truly dire and difficult to predict”.
The S&P 500 has almost reached the upper boundary of a bearish channel. The MSCI All Country World Minimum Volatility index ETF also has almost reached the upper limit of horizontal channel 74 (0.5 per cent).