An Open Letter from Doug Kennedy

In light of recent events within the banking industry, President and CEO of Peapack-Gladstone Bank, Doug Kennedy, has been moved to address an open letter to clients as well as the general public.


 


Weekly Economic & Market Recap

September 30, 2016The Weekly

The market’s attention has been keenly focused on the Federal Reserve for many months. With the first presidential debate this week, which historically marks the final phase of the election cycle, we expect investors to broaden their attention and to reduce their focus on the possible central bank action. The Fed is expected to be on hold until after the election, not wanting to appear to have an impact on the election. Along with significant differences regarding trade and tax policy, we see the opposing views from the two major party candidates concerning the proper role of the Fed as one of the significant areas that could cause uncertainty around the election. To be sure both candidates have economic policy suggestions that would have a beneficial impact on U.S. economic growth. Both have policies that are concerning to us as well (Clinton – tax policy/Trump – protectionism). Injecting uncertainty regarding the Federal Reserve will only serve to create more market volatility. The election, coupled with third quarter earnings releases, is likely to produce heightened volatility over the next six weeks for both fixed income and equity markets.