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US inflation hits 9% and everything is fine right?

Jul 20, 2022

7:30 am

• US inflation surprises to the upside but the markets take it in their stride • Fed looks minded to raise rates by 75bps or more • We suspect that while inflation will fall back it may persist for far longer than the markets will be comfortable with • China’s growth disappoints but still has…

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The Fed Serves Up a Reality Check

Jul 12, 2022

11:30 am

• The Fed reminds the market of its intention to increase rates markedly and at speed • US corporate results from banking sector due this week as well as inflation report • Global energy sector looks good value despite the debate about the path for oil prices • Europe looks vulnerable to further currency weakness…

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Silver Lining

Jul 8, 2022

11:06 am

In 1913 when the U.S. Federal Reserve Board came into existence, containing inflation and limiting economic swings were its key mandates. Ironically, today the Fed has been the primary source of inflation, and the U.S. is likely already into a technical recession. The Atlanta Fed has cut its GDP forecast to -2.1% Gears of conversation…

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As Bad as it Felt

Jul 6, 2022

8:28 am

• Asset markets have a poor quarter • Equity losses focused on tech and economic sensitive sectors • Investment grade bonds maintain the momentum of losses seen in Q1 • High yield and Emerging market debt performs likely equity with heavy losses • Investors move into the third quarter fearing recession and hoping that central…

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