Why the Fed is behind the curve on interest rates

Follow this link if this email is not displaying correctly DAILY BULLETIN Friday 16 December 2016 The Fed is behind the curve by Filipe R Costa | Economics | 6 mins. to read For the second time in a decade, the Fed has hiked its key interest rate target. One year after the first hike, the central bank decided to give continuity to a new tightening trend that is still expected to evolve very slowly over time. Policymakers at the FED now expect three rate rises in 2017, with the mean projected year-end rate now standing at 1.37%. Although the market was surprised with a slightly more hawkish stance than adopted at previous committee meetings, it failed to price the high likelihood of a few important eventualities, which may lead to future surprises. Equities are off record highs, the yen and the euro are on a downtrend, and gold is free falling. But most of these trends will most likely revert in the short term, as there is still huge optimism regarding corporate America and the FED decision was widely expected, after all. But in the medium term, risks will mount again.   Click here to read the full story LATEST STORIES FROM OUR BLOG Falanx Group: 13p technical target by Zak Mir | Trading | 1 mins. to read You might have thought that 2016 was going to be the year for cyber security group Falanx (LON:FLX). However, it may be the case that 2017 will be the year that the company comes up Trumps.   Click here to read the full story How to understand the RSI index by David Jones | Trading | 2 mins. to read The last twenty years have seen significant growth in the use of technical analysis and charting. The growth of the internet and much more trading by normal retail investors has played a big part in this.   Click here to read the full story Alba Mineral Resources: Broadening triangle towards 0.65p by Zak Mir | Trading | 1 mins. to read It may be the case that after the Horse Hill mania of the past few years, Alba Mineral Resources (LON:ALBA) is finally in sharp focus as a decent small cap prospect.   Click here to read the full story Vietnam is the next emerging-markets star by Nick Sudbury | Funds | 9 mins. to read Good morning Vietnam Adventurous investors who want to target countries with the highest growth potential might want to think about opening a position in Vietnam.   Click here to read the full story It's the way you sell 'em by Evil Knievil | Evil Diaries | 1 mins. to read It's the way you sell 'em: some readers may recall my remarking that Duckers, 6 The Turl, Oxford and shoemakers to the gentry is closing.   Click here to read the full story QUOTE OF THE DAY "I don't pretend we have all the answers. But the questions are certainly worth thinking about."                                                 Arthur C. Clarke MASTER INVESTOR VIDEO EXCLUSIVE LATEST EDITION OUT NOW The end of globalisation - we reveal the winners and losers Good morning Vietnam - Wake up to the next emerging markets star Small companies, big deals - the small caps punching above their weights Neil Woodford - The secrets of Britain's best-known fund manager Trumpanomics - What does it mean for your portfolio? Click here to download as PDF   Click here to read in ISSUU format Master Investor Ltd. Suite 88, 22 Notting Hill Gate London, W11 3JE T: +44 7515 542707 E: swen@masterinvestor.co.uk Share the newsletter: Follow us: Copyright © 2016 Master Investor Ltd, All rights reserved. Master Investor is a trading name of Master Investor Ltd. Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such descision. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news. Want to change how you receive these emails? Why did I get this | Unsubscribe from this list | Update subscription preferences