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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/us-jobless-claims-drop-signals-strong-economy-but-challenges-lie-ahead-for-investors-says-devere-ceo/
The recent sharp drop in US jobless claims is a wake-up call for investors, according to Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations.
Green emphasizes that the data, showing jobless claims fell by 9,000 to 211,000 last week, highlights the resilience of the US economy even as inflation and high interest rates persist.
“This is yet another sign that the world’s largest economy is extraordinarily robust,” Green said, stressing that now is the time for investors to capitalize on the opportunities emerging from a strong economic environment. The Labor Department’s report also revealed that the four-week average of jobless claims, a more reliable labor market indicator, dropped by 3,500 to 223,250, further underscoring the strength of the labor market.
While the drop in jobless claims signals a thriving economy, it also reinforces concerns about persistent inflation. Green noted that the current economic strength likely means interest rates will remain elevated for an extended period, keeping inflation stubbornly high. This, in turn, suggests that investors must adapt to a high-rate environment while seeking opportunities in sectors poised to benefit from robust economic growth, such as technology, industrials, and discretionary goods.
“The Fed has made it clear that it will do whatever it takes to control inflation, but that doesn’t mean the economy is cooling enough to justify rate cuts anytime soon,” Green cautioned. He urged investors to prepare for the reality of an extended high-rate environment.
At the same time, fixed-income investments are becoming more appealing as elevated yields offer diversification opportunities. The US dollar, supported by both the strong economy and the Fed’s hawkish stance, is expected to remain strong, which could pose challenges for emerging markets. Green advises investors to focus on long-term opportunities in these regions while managing short-term volatility.
Overall, while the drop in jobless claims demonstrates the resilience of the US economy, it is a double-edged sword. The same strength that fuels consumer spending and economic growth also reinforces the persistence of inflation, which could keep interest rates high. For investors, the key to success lies in taking a proactive and strategic approach to capitalize on emerging opportunities while navigating the challenges ahead.
Green concludes: “With the US economy continuing to defy expectations, investors should act decisively to take advantage of the opportunities ahead.”
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/us-jobless-claims-drop-signals-strong-economy-but-challenges-lie-ahead-for-investors-says-devere-ceo/
