Tags: Shadow | Fed | Cumberland | Advisors

Shadow Fed: Europe May Default, GOP Will Win House

By    |   Monday, 09 Aug 2010 01:34 PM

The recent annual gathering of financial movers and shakers known as a “Shadow Fed” produced some predictions of a sovereign default in Europe.

It also produced a consensus forecast that Republicans will regain control of the House of Representatives this November.

The Maine confab is hosted by Cumberland Advisors money management firm and was attended by 41 heavyweights in the financial community this year.

Of the 26 participants in the group’s survey, four expected at least one European country to default or reschedule its debt payments in the next year, according to a commentary about the meeting written by Cumberland Chairman David Kotok that appeared on various media outlets.

“Greece and Portugal were deemed the most at risk,” Kotok wrote.

As for the House, 60 percent of those surveyed believe Republicans will win a majority in November. But only four expect the GOP to take back the Senate.

On the economic front, the median forecast for the federal funds rate a year from now was 0.35 percent, and for the Standard & Poor’s 500 Index it was 1250. That’s 11 percent above the recent level of 1125.

Others see stocks rising too.

“The hot idea is that the Fed will do another round of quantitative easing,” Ralph Shive, manager of the Wasatch-1st Source Income Equity Fund, told Bloomberg. “It’s good for equities because it pumps more money into the system.”

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
The recent annual gathering of financial movers and shakers known as a Shadow Fed produced some predictions of a sovereign default in Europe. It also produced a consensus forecast that Republicans will regain control of the House of Representatives this November. The...
Shadow,Fed,Cumberland,Advisors
230
2010-34-09
Monday, 09 Aug 2010 01:34 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved