Absolute Research: US Debt Problems Overshadowing Strong Corporate Performance
We interview Wong Sui Jau, General Manager at Fundsupermart, for his take on the federal debt problems that are once again plaguing the US.
Questions:
US policy makers once again failed to reach an agreement on the reduction of federal budget. Do you think the resurgent US debt problems will have a lasting impact on the US financial markets?
- Not a pertinent issue for US debt markets
- US sovereign issues remain the perceived âsafe havenâ in times of risk aversion
- For example, even during the period after S&P downgraded US sovereign debt, the demand for Treasuries did not decrease
- Cautiously optimistic with regards to the US economy
- Though slower growth is expected, the US economy should be able to avoid a double-dip recession
On the corporate side of matters, how has US companies performed?
- Corporate earnings have been better than expected
- Recent Q3 announcements showed strong profitability in many US companies
- Investors should focus on companiesâ fundamentals rather than being swayed by negative sentiment
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| Broadcast Date |
14 December 2011 |
| Video Duration |
00:02:45 |
| Programme |
Absolute Research: US Debt Problems Overshadowing Strong Corporate Performance |
| © Fundsupermart.com |
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Language:
English |
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