May 4, 2021 6:44 am
The last few weeks have been particularly difficult for many of us as the second Covid wave in India has been much severe than any across the world. However, there are early signs that cases in Maharashtra (and Mumbai within that) may be peaking and some of the other, larger severely affected states like Tamil…
Read MoreApr 26, 2021 2:15 am
• India’s challenges still present a risk to markets • The rally in conventional government bonds has fixed income managers thinking • Equity managers commitment to growth stocks to be tested • ESG in the headlines with Earth day delivering new targets for cuts in emissions • President Biden’s tax raising plans show that some-day…
Read MoreApr 19, 2021 10:04 am
• Low US 10 year bond yield either discounts trouble for growth, or reflects market inflation complacency • Very recent surge in cases of a new variant of COVID-19 in India a concern for global markets • Meanwhile in the US economy there are signs of potential inflation pressure • Factors that could pressure for…
Read MoreApr 12, 2021 5:01 am
• Data to show strong growth in the US and China • US headline inflation due to rise at least 100bps • Value stocks to benefit from stronger nominal GDP growth • Dollar’s rise pauses and is still way off where it started last year • The shift to ESG investments gains momentum • Regulatory…
Read MoreApr 8, 2021 10:40 am
As expected, the monetary policy committee (MPC) kept rates unchanged and decided to maintain an accommodative stance for as long as needed in yesterday’s monetary policy. The RBI continued its focus on growth by providing liquidity support despite some upside risks to inflation. The RBI also announced measures to reduce bond price volatility like the…
Read MoreApr 6, 2021 5:34 am
More than a year ago on 23rd March 2020, the government of India announced its first nationwide lockdown of 21 days. The same day stock market hit the bottom. Since then, Indian equities (represented by Nifty Index) have rallied 70.9% as of 31st March 2021. Like every other market correction, this correction also taught us…
Read MoreApr 5, 2021 9:13 am
• More good news in the US economy – job gains a blow out in March • Growth surge risks more inflation risk; supply lines under pressure • Biden keeps adding to his spending plans – bond markets are worried • Developed market equities had a good quarter, but Emerging markets struggled • Fixed income…
Read MoreMar 30, 2021 7:10 am
• US bond yields still heading higher, but the slower pace could settle nerves • Inflation expectations priced into bond markets now at realistic levels • European economic recovery finally seems ready for take-off good news for equities • Emerging Market underperformance to moderate as investor inflows resume Bond tantrum fading, yields still rising. The…
Read MoreMar 23, 2021 12:03 am
• The Fed sees growth but no lasting inflation • The market is pricing a return to pre-GFC inflation of 2.25% • Bond yields are set to rise and pose a quandary for investors facing low yields and high rate risk • Old-fashioned dividend stocks offer a way out • They offer higher income, growth…
Read MoreMar 15, 2021 9:21 am
• The Fed meets this week. Will they twist QE to suppress long term US yields? • They have much to think about inflation, but no change in stance expected. • Market inflation forecasts on the rise. • Will the Fed recognise that the passing of Biden’s plans questions how long they can keep rates…
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