NEW YORK, March 20, 2014 /PRNewswire-USNewswire/ -- A panel of experts in international markets Thursday pointed to the pivotal role of central banks in both helping and hurting the U.S. and world economy. The panel on "Global Markets" concluded the first day of Quinnipiac University's Global Asset Management Education (G.A.M.E.) IV Forum at the Sheraton New York Times Square Hotel.
According to David Kelly, managing director and chief global strategist at J.P. Morgan Funds, "The elephant in the room is how accommodating the central banks are. Success has gone to their heads." He noted Janet Yellen's first press conference as chair of the U.S. Federal Reserve, and said her agency is "overdoing it on financial easing" at a time it is likely to achieve its goals on unemployment and interest rates.
Guy Adami, managing director at Drakon Capital and a contributor to "Fast Money" on CNBC, agreed with Kelly. "What does the Fed see that others don't see?" he asked. "It's been amazingly accommodating." Looking at its balance sheet of $4 trillion, he said, "It's hard to see how it ends well."
But several speakers, including Adami, praised the Fed's role in easing the U.S. recession. Abby Joseph Cohen, senior investment strategist and president of the Global Markets Institute at Goldman Sachs, said she put her "market hat" on after Yellen's remarks depressed stocks, and knew that the next day would likely be a good one for traders.
Foreign economic policy took a pummeling. Kelly said European actions have "been a bit like Lemony Snicket—a series of unfortunate events" that included coordinated fiscal austerity and a unified currency. He also took aim at Asia. "China's manufacturing is one of the wonders of the world," Kelly said, "but unfortunately the Chinese also manufacture economic statistics."
Asked which international market might be undervalued, Adami pointed to Russia and its current crisis over the Ukraine. "It's possible that the most negative sentiment manifests in Russia," he said.
Cohen said smart investors need to follow the pace of economic development. "It's not as robust as we would like, but it's nevertheless positive—we've had several years of growth," she said. "The fact that there's not likely to be a recession in 2014 becomes a very critical factor for us." She added that the U.S. equity market is "modestly undervalued—and is even more so if there is no recession."
Ralph Acampora, senior managing director of Altaira, agrees. He said he looks at low interest rates combined with low inflation and predicts a continuing secular bull market. For that reason, he sees investment in gold—long seen as an inflation hedge—as "volatile" in the near term.
The fourth forum, founded by Quinnipiac School of Business Finance Professor David Sauer, attracted more than 1,000 student participants from 131 colleges and 23 countries to hear 113 speakers over two and a half days. G.A.M.E. is partially organized by Quinnipiac students, who also take part in question-and-answer sessions with the speakers.
Quinnipiac is a private, coeducational, nonsectarian institution located 90 minutes north of New York City and two hours from Boston. The university enrolls 6,400 full-time undergraduate and 2,300 graduate students in 58 undergraduate and more than 20 graduate programs of study in its School of Business and Engineering, School of Communications, School of Education, School of Health Sciences, School of Law, Frank H. Netter MD School of Medicine, School of Nursing and College of Arts and Sciences. Quinnipiac consistently ranks among the top regional universities in the North in U.S. News & World Report's America's Best Colleges issue. The 2014 issue of U.S. News & World Report's America's Best Colleges named Quinnipiac as the top up-and-coming school with master's programs in the Northern Region. Quinnipiac also is recognized in Princeton Review's "The Best 377 Colleges." The Chronicle of Higher Education has named Quinnipiac among the "Great Colleges to Work For." For more information, please visit www.quinnipiac.edu. Connect with Quinnipiac on Facebook at www.facebook.com/quinnipiacuniversity and follow Quinnipiac on Twitter @QuinnipiacU.
SOURCE Quinnipiac University