New York (HedgeCo.Net) While working on the next manager profile for the HedgeCoVest newsletter, there were some topics that came up during the interview that were worth sharing before we publish the profile. We were speaking with Adam Savin and Jeff Roney from Maxwell Thacher when the discussion turned to the opportunities and threats in today’s investment environment.

With the employment report being so strong on Friday and the investment world immediately taking that strength as an open invitation for the Fed to execute a rate hike this year. The conversation that took place before the economic report seemed even more fitting after the report came out.

“We see several opportunities that could be great for investors and most of them are outside the United States. With the actions of the various central banks and their QE programs, by the fourth quarter we should see higher GDP numbers in Europe and in Asia,” stated Adam Savin. He added, “The actions of China’s central bank should lead to an increase in infrastructure spending in China.” Jeff Roney added that, “There is also tremendous growth potential in the smart phone industry especially in China and India.”

As for the threats to the market at this time, Savin and Roney pointed out that the biggest threat is that the QE programs don’t work. “If the QE programs are ineffective and we don’t see the GDP growth that investors are hoping for, we could see a downswing. There are also the secular and regional issues which could pose a threat to the bull markets most markets are experiencing so far in 2015.”The bull market in the US is in its sixth year and has lasted longer than the bullish expansion in the late 90s. With that being said, perhaps there are better opportunities on the global front.

Rick Pendergraft
HedgeCoVest
Research Analyst