NEW YORK, March 31, 2016 /PRNewswire-USNewswire/ -- The "Global Economy" panelists at Quinnipiac University's sixth annual Global Asset Management Education (G.A.M.E.) Forum in New York generally agreed that the U.S. economy is fundamentally strong, but they see problems abroad, some stemming from excessive government intervention.
Douglas Coté, chief market strategist at Voya Investment Management, congratulated the student audience for graduating into an economy with strong indicators, including low inflation and low unemployment. And he said that it's critical to pay attention to emerging markets, which have grown from 20 percent of global economy in the mid-1990s to 40 percent today.
"To keep our standard of living, we need to trade liberally with the rest of the world," Coté said. "Shanghai has 34 million people; New York has eight million." Coté joined other panelists in calling on China and Japan, among others, to liberalize state policies. "Japan needs a truly open economy."
David Asman, co-anchor of "After the Bell" on the Fox Business Network, said that increasing the cost of doing business means less business will be done, but removing regulation encourages the creation of start-ups. He cited high corporate tax rates—in France, for example—as causing businesses to flee to other countries (including Ireland). He decried the fact that free trade has become a target of presidential candidates.
Frances Donald, senior economist at Manulife Asset Management, cited three important issues facing investors—the "massive declines" in global oil prices, which have created "winners and losers"; the strong U.S. dollar; and the de-acceleration of the Chinese economy.
Donald named her own native Canada as a loser because of severe oil price shocks. "It's a permanent loss," she said, because oil prices may recover, but not to the $100 a barrel that buoyed the Canadian economy and made the country's tar sands very profitable.
Nevertheless, Coté cited some benefits of low oil prices, including relief for consumers. "And they've put OPEC out of business," he said.
Donald also warned against negative interest rates, which she said are unprecedented in 5,000 years of global economic data. The Bank of Japan adopted negative interest rates earlier this year to stimulate economic growth. "We're heading into uncharted waters," Donald said.
The panelists see ambiguities in the global economy. "The risks and uncertainties are wonderfully blended right now," said Tom Keene, Bloomberg News editor-at-large.
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SOURCE Quinnipiac University