Investments

Momentum Investments Economies at a glance - June 2021

Equity market meltdown unlikely if central banks act according to expectations

The big topic in equity markets, particularly in the US where stock markets continue to reach new highs, is whether extended valuations are signalling that a big meltdown is in the offing.

The case for diversification has never been stronger

In the latest Federal Reserve’s Monetary Policy Setting meeting, the Federal Open Market Committee (FOMC) chair, Jerome Powell, noted that these are extraordinarily unusual times, and not a time to reach hard conclusions.

Economy partly on right track, but lockdown level 4 back

At the beginning of June, US employment data was released showing that this economic giant’s unemployment rate fell to 5.8%, slightly better than expected and below April’s 6.1%. The US hospitality sector again led job creation, with 292 000 new positions.