Inflation Fight

May 30, 2023

6:42 am

• US and UK inflation surprises to the upside • Market now prices a high risk of a further 25ps Fed rate increase at June meeting • US 10-year government bond yield getting closer to offering real value • Bank of England lacking credibility in its inflation fight The market’s wishful thinking is not coming…

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Japan Inc is back….

May 23, 2023

5:54 am

• The current rally in Japanese equity market looks well supported by evolving positives • Ongoing corporate restructuring should facilitate a further material rise in the equity market • Relative to history a further 10% rally in the Nikkei 225 is not ruled out • Chinese equities, on the other hand, have been beaten up…

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Portfolio Commentary

May 17, 2023

11:57 am

Taking stock of market internals • The market has spent longer in the current consolidation than its historical average. • Despite a lot of pressure from laggard sectors, markets have been resilient. • More than half of the sectors that make up Nifty are already leading the market. • As the selling in laggard sectors…

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Really?

May 16, 2023

11:21 am

• The drop in US inflation leaves long-term interest rates closer to real returns but not quite • US inflation expectations are still on the rise potentially pushing the case that bonds yields are not yet attractive enough for wholesale buying. • Mixed economic data shows robust growth but clouds on the horizon from higher…

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