Nick Batsford, CEO of Tip TV, alongside Zak Mir, technical analyst for ShareProphets.com, and Charlie Gibson, Head of Mining for Edison Research, discuss the FOMC decision last night, the FTSE 100, Greece and Gold.
Excuse of China to hold rates at zero poor
Mir outlined the excuse of China and global issues of preventing the Fed hiking interest rates was poor, and that the decision should have been down to US data released recently. Gibson added that the whole situation is a total mess, but the Fed can’t admit that, so now the markets are unsure as the Fed have been unclear on their direction. Although, he did highlight that the Federal Reserve can’t possibly give strong signals on their direction as they must make economic decisions, not strategic ones. Batsford noted the US is no longer the bright spark of the global economy, and the FOMC decision last night showed that an interest rate hike in the immediate future is unlikely.
Gold should have a position in your portfolio
Batsford commented that the only place left for investment is gold, after the Fed decided to hold rates at zero. Gibson added that Gold deserves a place in your portfolio.
QE forever: Europe and Greece a mess
When Batsford noted that further downward pressure on inflation is likely in the near term, and that QE is a strong possibility in the EU, Mir outlined the mess that currently faces Europe and Greece. Batsford continued to note that we have forgotten about Greece, and with the general election this year, Mir highlighted that he doesn’t know what he’s wishing for as the polls revealed a 50/50 between the current PM and the rival party.
FTSE 100 failed at the 50% retracement
Batsford outlined that the sentiment on the FTSE 100 is only 10% bullish, which Mir still believed to be a strong opportunity to buy. Mir commented that the FTSE had failed at its 50% retracement, and as it remains below 6150 it looks bearish.