Jeff Powell, CIO and Managing Partner at Polaris Wealth Advisory, joins Asia Business Report to discuss the post-election marketplace temperment.
Hello, and welcome to Asia Business Report. I’m Karishma Vaswani votes are still being counted in the United States. And it’s down to a few states which could swing the election either way. Speaking a few hours ago, President Trump complained again of electoral fraud in the polls, but did not present any evidence to support those claims. But investors are back to buying even with this uncertainty. Here’s how Wall Street closed overnight. You can see they’re up about 2%, after a decision by the US Federal Reserve not to cut interest rates any further. Jeff Powell of Polaris wealth advisory group told me why the Fed is keeping rates so low.
If you look into the US economy, we’re still in a major recession. Our economic numbers are nowhere close to where they should be. And we’re certainly nowhere close to pre COVID figures. So the Fed has been very crystal clear with what they’re going to be doing, which has to be sitting on their hands for months to come until we actually have a an economic recovery.
Well, the Fed has said that there is more that can be done to help stimulate the economy, given what you’ve just said, what else can be done,
the Federal Reserve could continue to to do when it’s done in days past, which is quantitative easing, I mean, continuing to pump money supply into the markets, there’s a possibility that there could be some short term bandage put on by our government. But again, the likelihood I think, from from anything from Congress or anything from the federal government is pretty low with the exception of the Treasury.
So you know, this hope of a stimulus package? How hopeful or optimistic Are you that that will happen? And what’s the timeframe that we’re looking at?
I’m a little concerned about having any kind of stimulus going on at least in 2020. Right now, as we’re already talking about, Trump has already put out multiple lawsuits against multiple states, dealing with voter fraud or procedural fraud, or just miss procedures. I have a feeling that the republicans and the democrats are going to be fighting for weeks, hopefully only weeks to come and I think our attention is gonna be more on that, than it will be on a stimulus package. So my best guess would be shortly after an inauguration next year in January.
Well, sales in e commerce giant Alibaba have grown nearly 30% with revenues from its cloud computing business rising 60% compared with the same quarter last year. Meanwhile, Chinese regulators have this week suspended Alibaba affiliate, the ant group’s public