Global Markets Poised for Upswing as Fed Eyes Rate Cuts
Global investors could be on the verge of a fresh rally, with veteran fund manager Jeffrey Gundlach anticipating a shift in US monetary policy that favors risk assets — particularly outside the United States.
Gundlach, who leads DoubleLine Capital, believes the Federal Reserve may lower interest rates several times before the year ends. His reasoning points to a cooling US economy, where revised job figures and weak household employment surveys suggest that growth is losing steam. The slowdown, he argues, will eventually force the Fed to act.
Rather than seeing US stocks as the main beneficiaries, Gundlach points toward international equities. If American rates drop while other central banks hold steady, the dollar could weaken further, giving foreign assets a dual boost — gains in local markets and additional upside from currency conversion.
This currency effect, he says, could make overseas investments particularly attractive for dollar-based investors in the months ahead.
Europe Could Be a Hotspot
Analysts at Goldman Sachs share the sentiment, with their latest outlook highlighting Europe as a likely magnet for capital. They note that while the European Central Bank appears to be pausing rate cuts, the Fed’s expected easing could send the euro higher and fuel a wave of buying from investors eager to re-enter the market.
If both forecasts prove accurate, the combination of a softer dollar and regional monetary divergence could set the stage for significant moves across global markets before the year’s close.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
