market-commentary

MARKET COMMENTARY

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A Split View

Mar 26, 2024

9:05 am

• The FOMC is evenly split between those seeing only modest rate Fed rate cuts and those the expecting far more • The market believes the dovish view of a soft landing and reversion of inflation to target • SNB cuts rates – MPC and ECB to follow through the summer • Be careful with…

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The Fed under Pressure

Mar 19, 2024

9:22 am

• US bond market witnessed a sharp correction last week on unfavourable inflation data that unnerved investors • Inflation data has signalled a persistence that must worry the Fed • The FOMC is under pressure to reassess its guidance to the markets at this week’s meeting • Market prices just two or three rate cuts…

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US Equities: Pushing the Envelope too far?

Mar 12, 2024

8:14 am

• US equities discount more of the same – growth and low interest rates • A more sobering view has less growth and higher interest rates and hence lower valuation • A serious correction in the near-term maybe headed off by the near term hope of robust growth, lower interest rates and a future corporate…

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Investment Strategy

Mar 11, 2024

12:53 pm

• Market expectations of rate cuts by the Fed has moderated amid spike in January inflation numbers. • While headline numbers point to a resilient US economy, there are signs of stress under the surface. • We are close to neutral on Indian equity as valuations turn expensive even as macro and earnings are supportive….

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