Sep 22, 2021 5:54 am
• Evergrande situation deteriorates hitting markets early Monday • Market action in early trading in Asia suggests that the situation is threatening to run out of control. • Left to its own devices, a market-driven solution could cause serious systemic damage • The question of contagion leads to another pertinent question that the market will…
Read MoreSep 17, 2021 6:40 am
‘Hum hain naye, andaz kyon ho purana’ – is a Bollywood song that reflects the Indian youth in their journey of financialization of savings. In 2017, when the RBI committee released a report on household finance, 84% of Indian household wealth was in real estate and other physical goods, 11% in gold and only 5%…
Read MoreSep 15, 2021 10:48 am
• Equity markets have downside risk as the S&P 500 drops very close to a key support • A worst-case scenario could see the US market fall 23% and others would likely follow • However underlying growth remains well-founded offset by short term supply disruptions • Buying the dips could still be the strategy as…
Read MoreSep 7, 2021 12:04 am
• The US economy loses some momentum, but it may be just noise • The bond market shows some concern about wage inflation • ECB may discuss the tapering of bond purchases, but its implementation is unlikely for some time • The resignation of Japan’s PM could be another positive for the equity market •…
Read MoreSep 1, 2021 12:27 am
• Normal Fed monetary policy is still a long way away as Jerome Powell presses the ongoing near-zero rates • The bond market embraces the loose money and leaves longer-dated bond yields close to 1.30% • High yield bonds continue to accrue return • Equity markets enjoy loose monetary conditions but may fret about the…
Read MoreAug 24, 2021 11:24 am
• The Fed flip flops of when it will taper but retains an air of monetary accommodation. • Jackson Hole meeting could be a source of fixed income market volatility. • Exaggerated sell-off of the equity materials sector and commodity markets. • US ‘economy re-opening stocks’ have suffered marked losses over the month. • Investors…
Read MoreAug 17, 2021 8:37 am
• US Inflation still flying high, but markets concerned with the impact of delta variant • US inflation data appears to understate inflation in residential rents • Europe providing leadership in equity markets • China announces a five-year plan of broadening regulation • We see potential material risks to the downside for Chinese equities if…
Read MoreAug 13, 2021 1:06 pm
2021 has been an exciting year for investors thus far. Despite a big economic setback caused by Covid19, capital markets have been buoyant led by relentless money supply by central bankers and surprisingly solid growth in corporate profits. The long queue of IPOs and record amounts of fundraising (highest in the last two decades) reflect…
Read MoreAug 10, 2021 5:32 am
• Higher inflation and lower unemployment present a challenge to the Fed’s ultra-loose monetary policy • Near-term rise in COVID cases may provide an excuse to maintain an easy policy stance – for the moment • US bond yields rise but will still likely be range-bound in the very near term • The upcoming Jackson…
Read MoreAug 6, 2021 2:44 pm
Value VS Growth Market participants have debated the benefits of Value vs Growth investing probably since these terms were coined. Over the last decade or so growth has beaten value hands down. When the global markets are being propelled by fast-growing tech and tech-enabled companies and billions of dollars are betting on innovation, is there…
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