Opening Statement from the March 2019 Intelligent Investor 

Opening Statement from the March 2019 Intelligent Investor 

Originally published on March 7, 2019 (pre-market release)

Overview

Due to a trend of heightened weakness in the region it should be apparent that the ECB is unlikely to raise interest rates by its previous target date of June 2019. Without a significant firming up in the E.U. economy, a rate hike in 2019 would not make much sense other than as a symbolic gesture. However, a timely trade deal between the U.S. and China could boost global business sentiment sufficiently to improve the situation.

The trend of interest rate hikes by the Fed has strengthened the U.S. dollar against most currencies resulting in higher funding costs for many nations, especially emerging economies. Commodities pricing remains weak due to tepid demand. Worries over an economic contraction have deepened causing investors to flock into long bonds. This has caused the yield curve to flatten which itself has created