Jun 9, 2022 11:28 am
We started 2022 on a cautious note. The global economy was firmly on the path of normalization post covid but so was liquidity. Withdrawal of excess global liquidity was the antidote to the froth in equity markets. In our January 2022 year commentary, we wrote “While we are very constructive on the Indian equity story…
Read MoreJun 7, 2022 11:45 am
• Some US corporate management signals trouble, but the consensus is still complacent • Its is weird that the market is expecting fewer rate increases than the Fed seems to be signaling • ECB likely to join other central banks in signaling higher rates – good news for the euro • We continue to expect…
Read MoreMay 31, 2022 5:21 am
• As buy the dip gains some momentum in global equities, we look for long term value and not just tactical plays. • We see a great opportunity in Vietnamese equities after recent poor performance. Strong future growth and a low valuation. • We see value in Latam equities given their exposure to rising commodity…
Read MoreMay 25, 2022 6:39 am
• Concerns about less growth and more inflation appear to be driving sentiments currently • US retailing giant Target misses forecasts by a mile – a salutary lesson for investors • The US consumer has rolled over and faces a worrying increase in gasoline prices • The read-through for the rest of the market is…
Read MoreMay 18, 2022 10:12 am
The much talked about “Market Correction” – It’s finally here and it’s not the first time. Both globally and domestically markets are struggling to hold up. Optimism is gradually turning into despair and most market leaders of the previous rally are breaking down. There is no denying that we are in midst of global uncertainty,…
Read MoreMay 17, 2022 9:04 am
• Equities rebound as bond yields dip • Ordinarily, historical precedents suggest, the setback in equities would be followed by a positive year but… • Inflation is still a major concern, and central banks have much to do • Higher oil prices clearly helping GCC equity markets – Aramco becomes the world’s most valuable company…
Read MoreMay 12, 2022 7:27 am
Just last month, we wrote about attention moving from the ravages of the Russia-Ukraine war to economic growth concerns. We have moved further along the path and the debate is now centred around inflation higher for longer vs demand destruction and a global industrial recession. (We do think that we are headed towards a recession…
Read MoreMay 10, 2022 11:55 am
• Central Bank meetings show a wide diversity of views within each individual bank • Relative to expected levels of inflation monetary policy remains behind the curve • Rising recession risks has credit wobbling • A further stage of equity market sell off may follow the credit markets • In China it doesn’t get any…
Read MoreMay 5, 2022 6:17 am
• US equity sell-off has gained momentum • Central bankers, meanwhile, are accelerating their monetary tightening • Growth stocks are at the epicentre of the current sell-off with still more downside risks • Latin America is ahead of the rest of the world in its tightening cycle – a positive for the local asset markets…
Read MoreApr 26, 2022 10:35 am
• Sharp corrections in corners of the financial markets are an indication of lurking risk • Yen moves to a two-decade low against the dollar • US two-year yields have increased fivefold in a few months • US equities lack technical support as the market level moves into no man’s land • S&P500 at risk…
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