Fed Policy Is Supportive of Risky Assets: Ganesh

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Aug. 5 (Bloomberg) -- Kiran Ganesh, cross asset strategist at UBS Wealth Management, talks with Jonathan Ferro about the state of the U.S. economy in relation to Federal Reserve policy and offers his current invest strategy. He speaks on “On The Move.”

Good morning.


When i look at your monthly news letter, the first line i see if global equities have delivered postal a wonder percent -- 100% earning.

We think the music is very much going to continue.

If you look at the u.s. economy almost the perfect position where jobs can continue to grow but the unemployment rate has not picked up.

Janet yellen, the chair of the federal reserve, she's going to key policy until mid-2015 while there are strong jobs growth in the u.s. this picture is very supportive of the equities.

When you see the likes of fisher, their rates of might rise faster and in market is behind.

Do you dismiss that as moist coming out of the fed?

We have a lot of concern around their earlier last week and that cost the selloff.

The payrolls we saw on friday sure really assay those fears.

The participation rate picked up.

Unemployment increase.

It is supportive of janet yellen's view as the economy recover, people will start to rejoin the labor force.

Some of these said members are talking about it.

Kiran, let's talk about overweight credit.

We are talking by u.s. high-yield and stocks.

Last week, that is where the softness was.

He janet yellen has been questioning some of the valuations in the high-yield space.

Do you continue to hold that view?

Over the past year or so, reducing our overweight position in u.s. high-yield credit because we are aware is around 370 basis points.

Anot as attractive as they once were.

We think it is an attractive area.

Janet yellen's recent comments that we saw from alan greenspan when he spoke about hubris.

He did nothing to stop russia and they ran for three years.

We think yellen is in a similar position.

We think she is nervous about some of the valuation but we do not think it will be the primary concern.

The primary concern is for the labor market.

Very quickly, you are overweight for european stocks.

A lot of talk about equities in europe.

The possibility of qe for ecb.

What has driven your move to redirect?

Each month, you get a monthly investor and fund managers gather to discuss views.

Over the past few months, there's been a lots of discussion where people of them bullish on your.

What has been key is people thinking the economy will recover.

After contracting for so many years, call it the earnings starting to grow and margins increasing.

It is coming through.

If you look at what happened so far this year, we have not gotten there.

Say-year-old weighing on earnings.

In the second quarter particularly.

We had some more witnesses there.

-- we can assist -- weaknesses

This text has been automatically generated. It may not be 100% accurate.


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