Speaking at International Adviser’s Gulf Expert Investor Forum in Dubai, Marber said his initial reaction to the news, and possibly the market’s reaction, was relief that Ben Bernanke, chairman of the Federal Reserve, is also much more likely to stay on and there will therefore be a more conducive environment for financial markets.
“Bernanke staying is really good for the financial markets because he really believes in providing liquidity and keeping interest rates down even for a prolonged period of time and that is only good for financial assets,” said Marber.
“Obama will of course have the tough task of dealing with the fiscal cliff, which is the first thing he will need to do, but if he can get the fiscal cliff cleared up the markets will respond well and America can begin to rebuild its global reputation.”
Looking specifically at the MENA region, Marber said a continuing “grinding up” of the US economy, and a fading of the European sovereign debt crisis, will support MENA, given its correlation to energy markets, while the region continues its diversification away from natural resources.
