• Michele Lopez

LATE CYCLE EBB AND FLOW – Seeking a market equilibrium

Friends,




In this late stage of economic expansion, a fully priced market debate itself between the ebb and flow of monetary and fiscal policy, international trade disputes, and unexpected economic events. You will find below the latest market-relevant developments this week.


As foreseen by markets, the Federal Reserve cut rates by 0.25% last Wednesday for the second time in a row, a slow but consistent path to lower interest rates. The Fed Funds rate stands between 1.75% to 2.00%.

The Chinese Government and People Bank of China (PBOC) tweaked financial conditions using several tools last week: a cut for bank reserves requirements, a reduced private sector borrowings, and increased investments for infrastructure.


A drone and missile attack to several Saudi Arabia oil infrastructure facilities rattle oil markets. Statements from both country officials blame Iran as culprit. The strike interrupted almost half of Saudi Arabia light oil flow (5 MM barrels of oil daily).


The financial impact was limited and short-lived. Saudi Arabia’s authorities claimed they would quickly recover production and repair facilities. A combination of emergency oil reserves (Saudi Arabia and the U.S.) and old oil fields revamp will fill the gap.


Later we learned repairs to oil infrastructure was extensive and may take months to recover. The U.S. government has decided to send U.S. troops to Saudi Arabia. Probably, oil prices might have an oil risk premium going forward due to Middle East concerns.


Last Friday, two events related to the U.S. China trade war moved markets sharply lower. Just comment from President Trump that a short term trade deal it is not required before 2020 election and abrupt interruption of a Chinese visit to explore agriculture purchased.


You may subscribe to receive this weekly newsletter at the top of the page.


For more questions, or to review your portfolio, you can reach me at


michele.lopez@mellig.us

+1-786-953-0475 (Whatsapp)

instagram : @mr_mklopez


Have a nice week!


- Michele López

COMPANY

SERVICES

GET CONNECTED

LOCATIONS

8350 Ashlane Way,

The Woodlands, Texas 77382

+1.832.742.6976

400 University Dr., Suite 400

Coral Gables, Florida 33134

+1.305.393.8474

  • LinkedIn Social Icon
  • Facebook
  • Twitter
  • Instagram

MELLIG GROUP, LLC. 

It is a registered investment adviser (RIA) in the states of Texas and Florida. Information presented in this web page is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and tax professional before implementing any strategy discussed herein. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. financial advisors. Mellig Group' U.S. financial advisors may only conduct business with residents of the states for which they are properly registered.

INTERACTIVE BROKERS, LLC
It is a member NYSE - FINRA - SIPC and regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission. Interactive Brokers does not endorse, nor recommend, independent financial advisors, nor hedge funds including Mellig Group, LLC. Interactive Brokers provides execution and clearing services to its clients 

Copyright © 2017 Mellig Group, LLC.  All Rights Reserved. - Legal Disclaimer