With the Arrival of Trump as US President the Adar Macro Hedge Fund Foresees a 1% Interest Rate Increase in 2017
Adar Capital Partners considers that with the arrival of Donald Trump as US President, interest rates will go up 0.25% in the short term to reach 1.75% in 2017.
NEW YORK, November 11, 2016 /PRNewswire/ --
In the opinion of Diego Marynberg, the President of Adar Capital, Trump will concentrate mainly on developing the US domestic economy, strengthening infrastructure and making use of fiscal policy, which will result in higher rates in the medium term set against a fear of increased inflation, which will impact the behaviour of the Fed and central banks.
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In Latinoamérica, Adar Capital foresees above all an economic upturn in Argentina and Brazil and a more unfavourable situation in Mexico. The value of certain financial assets will fall slightly. Other countries, such as Cuba and Venezuela, will not be too much affected in principle by the Trump era and will remain stable as regards their monetary policy.
For Israel Diego Marynberg believes that Trump will be very positive, since Obama's Democratic government tended to interfere in its internal affairs in an inappropriate way. With Trump says Marynberg, Israel will enjoy more freedom of movement to pursue its own policies.
Marynberg says the future President Trump has an initial advantage over Obama insomuch as he has a better understanding of the dynamics of the economy and enjoys the broad political support of both legislative chambers. However, as there are many asset bubbles and starting from negative interest rates, the market will make some moderate corrections during the first months of 2017.
The President of Adar Capital also believes that new technologies and the widespread use of the internet will lead to growing volatility in the taking of investment decisions. The media and opinion polls are no longer good predictors of who will win a vote, as we have seen in Brexit, in Colombia and now in the United States. Consequently, investment decisions will also continue to be taken at the last moment.
About Adar Capital Partners
Adar Capital Partners Ltd. ("ACP") provides investment advice to institutional investors, family offices and private investment funds. The Adar Macro Fund, ACP's primary fund manages assets in excess of $1 Billion USD. Led by the fund's founder and CIO, Diego Marynberg, Adar has developed a very successful investment strategy and historical track record with a main focus on Latin American and European financial markets. http://www.adarcapitalpartners.com
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SOURCE Adar Capital Partners Ltd.
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