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Genus Video Commentary & Perspective

Genus Video Commentary & Perspective

Third Quarter 2010

Although the U.S. economy entered a soft patch in the summer — and will take some time to climb out of it — the world economy continues to expand. China and other emerging powers are offsetting weakness in the U.S. and Europe and providing momentum to the recovery.

Key Takeaways

• U.S. hits a soft patch, but overall global economic recovery remains resilient
• China, emerging markets offsetting weakness in Europe and the U.S.
• Fed signals 2nd round of quantitative easing; printing money, buying bonds
• Major economies focus on managing U.S.$ decline imposed by Fed’s new cycle
• Fed action prompts Japan to make token rate cut, buy dollars to buy bonds
• Portfolios emphasize developed market income-drivers, emerging markets