Joseph Grinkorn: "The Fed will only raise interest rates in 2016 and China’s central bank will launch a massive quantitative easing of trillions of dollars"

NEW YORK CITY, NEW YORK, UNITED STATES, September 13, 2015 /EINPresswire.com/ -- “As opposed to the consensus of Wall Street investors, I estimate that the Federal Reserve will raise interest rates only at the beginning of 2016, which is in line with my previous prediction in 2014 when the option of an interest rate hike from the Fed was first discussed.” So predicts Joseph Grinkorn, a Wall Street investment expert and CEO of Morris Group. Grinkorn states that the Dow Jones Industrial Average has fallen by 11% from the its record of 18,312 back on May 19; in his opinion, the Dow Jones has a potential to strengthen over the 19,000 mark, which is about 5% above the previous record. This is an upside of over 15% for the American market.

Additionally, Grinkorn predicts the Chinese market will continue to get stronger in accordance with trillions of dollars in incentive plans and quantitative easing from the Chinese Central bank, which will do everything in their power to continue the positive momentum created in the Chinese capital markets.

Grinkorn has also said that these factors are expected to lead a long-term sharp market move upward that will bring the indices on Wall Street to new peak levels. Grinkorn, as mentioned, predicts that on the next meeting of the Fed, despite the consensus of analysts, will be decided not to raise interest rates in the US. The reason is that despite the good condition of the US economy, the developing economies such as China and Europe showed a slowdown in growth, which may cause the Fed to be concerned regarding near-term damage for the U.S. economy.

Grinkorn further discusses the sharp correction that happened in the markets about a month ago and said: “last month’s correction was an event that got magnified due to exaggerated panic and fear that spread rapidly among investors all over the world.” Technically, in case the Fed does raise the interest rates in 0.25%, it’s not a dramatic step that would change something in investors’ portfolios. On the other hand, the Fed might be worried about a negative psychological effect on the markets at this time, when the markets show hypersensitivity and react sharply to almost any news that may point to a trend change.

When talking about the world’s second largest economy, China, Grinkorn estimates that extensive measures by the central bank such as lowering the interest rates till they’re almost at zero levels, unlike the current 4.6% there is today. Additionally, the PBOC is interested in preserving the growth in the Chinese capital market. The current regime will have to perform a meaningful quantitative easing and inject trillions of dollars to the Chinese economy to keep the high growth rate at about 7%. This expected overflow of money from China’s central bank will lead to a sharp increase in the value of the assets and shares of investors and a long-term rally, fueled by new Chinese government monetary policy.

Grinkorn recommends investors to focus on the US market due to its strength, liquidity and transparency towards investors. The U.S. market is valued at approx. 17 trillion dollars. Most of one’s stock portfolio exposure should be in the U.S. market. Although there are very interesting companies in S&P500 and Dow Jones, I see biggest potential upside in the NASDAQ, where e-commerce companies continue to provide new products and services which their demand continues to grow on a daily basis.

MG PR
Joseph Grinkorn, Morris Group, Social Media, Investments, Fa
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