Lead Capital Partners: The deliberations at the Bank of Japan (BoJ) and the US Federal Reserve will be closely monitored this week for clues as to the next direction for investors.
The BoJ’s monetary policy committee will meet on Thursday to reveal its latest measures to combat slowing growth and anemic inflation. The central bank is expected to boost its quantitative easing program but some investors still hope that Prime Minister, Shinzo Abe’s promise of a robust round of fiscal stimulus will be forthcoming and that the BoJ will use so-called “Helicopter Money” to finance it.
The US Federal Reserve begins its two-day meeting on Tuesday and while it is largely expected to hold fire on a rate hike, it is hoped that its policy statement will provide an indication of the Federal Open Market Committee’s thinking on the timing of future monetary policy.
David Eckhart, Chief Market Strategist at Lead Capital Partners said, “Central banks are still considered the most important players in the market but there is a growing sense among investors that they can’t really do anything to drive economic growth. Whether or not they admit it, there is a limit to what monetary policy can achieve so investors are looking to governments to come forward with plans for fiscal stimulus to drive growth.”
Lead Capital Partners said it doesn’t expect “fireworks” from the Fed but it believes that despite attempts by BoJ Governor Haruhiko Kuroda to downplay the prospects for the deployment of “Helicopter Money”, the central bank’s decisions will be a market moving event.

About Lead Capital Partners:
Lead Capital Partners is an independent investment management practice founded on the philosophy that an active, opportunistic and adaptable approach to investing provides our clients with the best chance for the realization of long-term positive returns irrespective of prevailing market environments.
It is our firm belief that the “buy and hold” investment strategy that has traditionally served investors to such great effect over the decades can, now, lead to significant losses in bear markets, or to little or no profit in markets that persist in trading in ranges unless they are actively managed by seasoned professionals such as those at Lead Capital Partners.