Does That Change Everything?

Jun 8, 2020

6:48 am

• Massive surprise on US employment favours risk assets • With waves of powerful policy response still flowing investors will be upbeat • We expect an ongoing rotation into assets that have underperformed • We expect Europe and emerging markets to play catch up • Growth stocks may struggle due to higher long-term interest rates…

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Divergence in Reality

Jun 3, 2020

3:37 am

Global reopening, a ray of hope “Finally!” is the emotion that springs to our minds as large part of the globe shifts gears from managing through a lockdown to re-emergence. Notwithstanding personal fears, just having the option of mobility is a big trigger for the hope of normalcy. But one look at the accompanying chart…

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Why are Credit Markets Rallying?

Jun 1, 2020

7:08 am

• As is the case in equity markets, credit is showing strong evidence of short-term overvaluation • Further downgrades are inevitable • The impact of economic pain is far from clear • A properly articulated bond strategy could avoid the pitfalls and take advantage of high spreads Credit markets have recovered well from the point…

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Re-opening with Hope

May 26, 2020

6:29 am

• Economic data displays fewer really bad surprises • Some country and sector rotation within equity markets • Emerging market debt showing good momentum • India – a market waiting to perform • Chinese assets with domestic support but international challenges We would frame the current market phase as a ‘re-opening filled with hope’. Markets…

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