Investment Strategy

Jun 7, 2023

11:35 am

• Debt markets have finally aligned themselves with the Fed’s stance of higher-for-longer rates. • Mega-cap stocks in the US have led the rally but look vulnerable again. • We are neutral on equities, with a slight positive bias, as still-not-cheap valuations offset strong economic and earnings growth. • We remain overweight on Gold as…

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Goldilocks faces off to the Fed Wolf

Jun 6, 2023

6:00 am

• A strong US labour market raises hopes of a soft landing • However, while the market disagrees, we expect the Fed to react by raising rates still further – maybe as early as this month • If a Fed rate increase were to not materialise in June, economically sensitive equity sectors could rally further…

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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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