Nervousness Causes Market Collapse: Was it Really That Bad?

Different Points of View of Experts

Date:

Pixabay CC0 Public Domain

Autor: Marcelo Soba

For James Eagle, founder of Eeagli, it was a perfect storm based on inflation fears, less hope for interest rate cuts, concerns about the upcoming U.S. elections, and global tensions

Tiffany Wilding, an economist at PIMCO, commented that this outlook consolidates a Federal Reserve rate cut in September and increases the risk that the Fed will revise its forecasts to signal a faster pace of cuts in the future

"The Fed is fulfilling its dual mandate, full employment with price control. This would not justify a cut in monetary policy rates. However, if the capital market crisis deepens and this starts to impact the balance sheet of some sector of the economy, it will surely be necessary for the Fed to take action. Otherwise, we will have to wait for the September session," Fernando Marengo, Chief Economist at BlackToro Global Wealth Management, told Funds Society

Santiago Ulloa, Managing Partner of We Family Offices, also thought that the market reaction was "exaggerated, accelerated by systematic trading as stop losses were surpassed"