September - 2017

Integrale Advisors by Keith Knutsson

INTEGRALE ADVISORS

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Berlin

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U.S. Household Net Worth Rises in Q2

The total net worth of U.S. households is currently higher than ever, helped by improving home values and stock prices. According to the Federal Reserve, the net worth of U.S. households, the total of all assets minus all liabilities, rose by $1.7 trillion in Q2 2017 to a record $96.2 trillion. “The U.S. household balance sheet is healthy and continues to be one of the key themes of our view that the current economic expansion is far from over” said Keith Knutsson of Integral

Portuguese Investment Bonds: A Sign of New Opportunities?

Portugal’s drastic reduction in its debt in 2017 and best growth in decades has rallied its bonds. The S&P and the IMF reinstated investment-grade credit rating to a country whose bonds were previously in junk territory. Overall, the country’s export performance has improved, investment increased, and growth accelerated. The S&P’s upgraded rating to BBB- from BB+ stated an expected growth of more than 2% on average for the next 3 years. Moody’s Investors Service and Fitch Rat

Interest Rates and The Federal Reserve’s Reversal of The Stimulus Program

Federal Reserve chairwoman Janet Yellen stated Wednesday that rates are being held, but hinted of a possibility that a rate-hike is under consideration. Additionally, Yellen confirmed that through unanimous decision the Fed will reduce its balance sheet starting in October this year. The statement shows confidence that recent stagnant inflation measures are temporary. The dollar bounced back from losses earlier in the day as announcements were being made. The balance sheet, w

Financial Flooding Will Recede

The physical damage from Hurricane’s Harvey and Irma can last for a long period of time, however, the overall economic damage is likely to recede and should do little to alter the US Federal Reserve’s strategy for tightening monetary policy. In 2005, the Fed lifted short-term interest rates just a month after Hurricane Katrina ripped through the Gulf of Mexico. Janet Yellen, chair of the Federal Reserve may take a similar position in the wake of the recent storms affecting Te

The Drive for a Circular Economy

Technology is at the forefront of the economy as we progress through the 21st century. The circular economy is fueled by advancing technology geared toward making the world more efficient and less resource dependent. The basic principle of a circular economy strays away from a linear economy focused on making and disposing of resources. The circular economy focuses on rethinking a product’s life cycle by creating value from waste, efficient resource extraction, remanufacturin

Brexit Timeline: Events Leading Up To Brexit

As the clock on Brexit negotiations is ticking, Britain’s political winds are shifting. In two months, the European Council decides whether Brexit negotiations can advance to focus solely on future relationship and any potential transitional deal based on a report of the Chief negotiator Michel Barnier. Currently the logistics of managing the actual political exit of Britain are slowing down proceedings. To understand future developments, it’s vital to begin with an understan

Lagging capital flows: A Sign of Safer Financial Markets?

With gross cross-border capital flows totaling 65 percent less than in 2007, the global financial crisis is continuing to shape the global financial system; large European and US banks have retrenched from foreign markets. Investors should be aware that these facts don’t symbolize a detrimental future for financial globalization. Despite inherent risks, the slow recovery from pre-crisis conditions signals towards an increasingly stable and risk-sensitive opportunity for finan

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