EM Instability, Obamacare Affecting Fed: Popper

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Oct. 30 (Bloomberg) -- Andrew Popper, Global Strategist at Beauclerc Advisory Services, discusses Federal Reserve policy being affected by health care and emerging market instability. He appears on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Of next year.

Any chance of surprises?

The fed has surprised us in the past.

There are so many factors pushing out the tapering, but it goes beyond that.

There is political uncertainty and government shut down.

Now we have to add to the turmoil relating to obamacare that may have a negative impact on the economy by effect inc.

Negatively consumer confidence and negatively the employment figures.

Then there is the relation to emerging markets.

U.s. data is beginning to show some loss of momentum.

Everything we look at.

Elaborate on your thoughts on obamacare and the damage you see.

One should not make a judgment on long term quality and impact, but short-term impact may be negative.

This is not only the publicized problem's with the website, but what should not be overlooked is the fact millions of people are going to lose their insurance because it is not compatible with the new requirements of the law.

Not only do people not have to go on the website and comply, but people losing insurance will have to comply.

There are millions of other things people have to worry about other than shopping, so that may have a negative impact on retail sales, so it may add to the problems of the u.s. economy and the sense of a loss of momentum.

The next inc.

Relating to obamacare that may have some impact is the relationship to employment.

Some employers may decide to put workers on part-time, maybe because they do not required to pay for their insurance, and that may have a negative impact not only on the number employed but the hours of work.

That may slow down economic impact, so the fed had all the reasons to wait.

S&p record?

Out jones record?

-- dow jones record?

How high can these indices go despite the worries in the background?

It is because.

The markets are fueled by changes in perceptions as far as tapering is concerned, so the main impact quantitative easing is having today is on the markets, and it i has improved the investment climate, although it may not have helped the real economy.

The relationship may be a perverse one, that the slow of momentum in the economy is helping the markets because of the impact it's going to have on the fed.

Is there a sign posted is going to taper again?

Although we think the investment environment has improved, we have trimmed our positions, and we are shifting from a very strong directional bias in favor of developed equities to a somewhat more reduced position as far as direction is concerned and shifting to positions where we take advantage of volatility in the market in the sense of being short volatility and making our money from the idea the equities will be arranged, so as long as we don't see a major fall in equities we will profit from short volatility.

And he says the ecb is preparing stimulative -- andy says the ecb is preparing stimulative monetary measures.

Stay with us.

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


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