01/05/2017 - Peter Boockvar Observations Going Into 2017 – The Boock Report
“No one should be so naïve to think that US growth and the price of assets won’t be impacted by higher interest rates, whether Fed induced on the short end or market driven on the long end. We’ve pulled forward economic activity (autos in particular) and returns in a variety of markets (bonds, stocks, and commercial real estate most notably). Financial conditions will tighten further in 2017 and I include this quote from my friend David Rosenberg, ‘There have been 13 Fed rate hike cycles in the post WWII era, and 10 of these landed the economy in recession and the three that were aborted – the mid 1960s, the mid 1980s and the mid 1990s – were only aborted because the economy either slowed precipitously or there was a financial accident that forced the central bank to the sidelines. There has never been a Fed hiking cycle that ended benevolently’ .. The ECB and BoJ will continue to damage the business model of their banking systems due to negative interest rates and suppression of market rates that has flattened yield curves.”
LINK HERE to the commentary on The Boock Report
