December Tapering Still Not Off the Table: Amoroso

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Nov. 17 (Bloomberg) -- Anastasia Amoroso, global market strategist at JPMorgan Funds, talks with Betty Lu about what we learned about how Janet Yellen would run the Federal Reserve and why she believes tapering is not off the table for December. She speaks on Bloomberg Television’s “In The Loop.”

A december taper are rising.

I saw you shaking your head.

His opinion about janet yellen, you are going no, no, no.

The objective of her testimony was to confirm the status quo.

It was confirmed to what the fed is focused on doing.

Their focus on a substantial part of the equation.

What she did say is very much consistent with where we can see from the language so far.

I do not think the objective was to try to put a wedge between her and what chairman bernanke thanks.

That is part of the disagreement.

I think the fed does have this mandate.

She appears to be for that.

Why do you think this could happen as early as december?

What i think of the december taper -- it is not off the taper.

None of the months are off the table.

Yellen said yesterday that every single month there is a fresh new look of how economic data has involved since the last time.

Since the last time, gdp and payroll has improved.

Housing we will have to look to the next couple of weeks of data to check that off the list.

Not surprising you are recommending investors go into cyclical stocks.

Your least favorite are the utilities.

Telecom is another one.

Scarlet, you have been looking at the prospects for telecom.

M a wireless carriers -- wireless carriers are hooking up left and right.

The industry leads all m&a activity this year.

480 eight deals worth a combined $254 billion.

At&t has sold off cell terrors -- cell towers to raise cash.

Why do you say no to this?

I think telecom utilities or on -- bond yield -- are bond yield proxies.

They do not have the ability to build cash flow.

That is why it will eventually occur.

We have to look for companies with the ability to grow those cash flows.

Emerging markets is another area you say investors should be watching closely and carefully.

Alix steel has been looking at the emerging markets.

What taper does to emerging stocks abroad.

A steep decline back in june when ben bernanke floated the taper.

First of all, fed pulls back on stimulus and strengthens the u.s. dollar.

Rotation out of emerging markets back and to developed markets.

It weakened the country's buying power as the currency depreciated against the dollar.

These countries have independent against that.

You also need a lot of capital inflow in order to curb that balance.

The question is with the ripple effect -- is what the ripple effect will be with the taper.

You have countries that are vulnerable to tapering.

Turkey, india, and in asia, south africa, and brazil.

Those are vulnerable.

They are not the prime beneficiaries of the rebound.

That is why it has been a tale of two cities in the emerging markets.

If we're going to approach emerging markets, we have to do it selectively and emphasized the countries that are accumulating foreign reserves.

For instance -- taiwan, singapore, malaysia, russia.

Those are some of the places that stand out.

Thank you for joining us.

Coming up, comcast is working with hollywood studios to revamp its on demand content.

Will the partnership translate into big money for comcast question that we will find out in a moment.

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