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MARKET COMMENTARY

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You Can’t Deflate a Bubble, Can You?

Feb 1, 2021

1:05 pm

• Commentary on bubble-like equity market conditions has reached a frenzy. • Equity market valuations are stretched, but that is not a useful signal for predicting a sell off. • The long term factors that have supported exaggerated valuations are still very much in play. • Would investors really substantially sell equities ahead of President…

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COVID versus Biden’s Budget Promises

Jan 25, 2021

3:08 pm

• COVID cases continue to climb but market focused on President Biden’s promises. • Asian data shows strong exports led principally by manufacturing. • Emerging market debt challenged but still able to perform. • Vietnam awaiting political news and primed for further performance. • Corporate results season expected to beat expectations. • Nothing expected from…

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President Biden – And Now for Something Completely Different

Jan 18, 2021

12:47 pm

• $190 trillion emergency package expected within days • Infrastructure “Build back better plan” expected in February • Acceleration of COVID 19 vaccine distribution • Global trade antagonism toned down • Financial markets like the support for growth but wary of a build of inflations Viewed from all possible angles, the start of the Biden…

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Silver Linings Even in Adversity

Jan 11, 2021

3:43 pm

• Even trouble in Congress can’t stop the bull run in asset prices. • Biden’s majority in both houses opens the prospect of further significant fiscal support. • Eurozone policy makers have yet to respond to the aggravated COVID crisis. • US inflation-linked bonds discount a lot of inflation but we don’t believe the Fed…

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