Hendren Group is keeping a sharp eye on the Federal Reserve and it’s continuation of their financial stimulus since they announced that they will purchase further securities worth USD $80billion per month for the foreseeable future.
Hendren Group is a financial management and investment company dealing with investment methods and strategies. Based in Tokyo boasting a large base of private clients and a well skilled team of advisors, they conduct research and then subsequently develop short and long-term systematic approaches to achieving optimum returns on investments for themselves, their associates and for their current client base.
“The effects that this announcement has, allows us to calculate the impact that this Quantitative Easing (QE) will have on the monetary markets and the relative trading involved as bonds and stocks adjust to the outward flow of foreign capital,” said David Holmes Senior Vice President of Mergers and Acquisitions at the Hendren Group.
Hendren Group are currently collating the research from their analytical team in order that they may present a forecast to their clients and other investors outlining an investment strategy that will optimize profitability on any funding that may have been used from the company’s escrow.
The Hendren Groups Senior Vice President David Holmes continued to comment, “Over the past few years developed Asian economies like Japan and other similar developed economies in the global markets such as the United States and the European Union have slowed down quite considerably. Consequently many countries, in order to tackle this problem have tried to stimulate their individual economies by injecting money into their individual financial systems as has been seen in the last few years.”
Subsequently a considerable amount of finance has found its way into emerging countries financial markets. This flow of capital into both stock and bond markets throughout Asia and other emerging economies has resulted in their currencies to appreciate in value at a furious pace thus causing concern that should the flow of capital suddenly change direction it will affect the stability of the particular country’s currency in an adverse manner.
Now that the Federal Reserve has announced its’ plan is to trim down the Quantitative Easing of the plan by moderating the size of its asset purchases before the end of the purchasing program at the end of next year dependent on the fact that the economy is performing in line with its current economic outlook.
Global markets have fluctuated heavily due to these concerns about a loss of liquidity and this has resulted in foreign investors offloading a variety of types of assets choosing to hold the cash or possibly commodities instead this is the main reason that the price of securities has fallen sharply.
“Uncertainty over whether the Federal Reserve will repeal its economical stimulating measures has been the cause of this outflow of foreign capital across many of the markets throughout Asia so investors need to monitor this situation carefully and adjust their portfolios accordingly to negate any sudden surprises and turn it around so that due to their knowledge can actually make quite considerable gains” concluded David Holmes Senior Vice President of Mergers and Acquisitions at the Hendren Group.
Hendren Group is set to continue to advise clients to acquire shares within the Asian markets adding to successful diversified portfolios.