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The Dollar – the Best of a Bad Bunch

Jul 26, 2022

11:24 am

• Dollar – few alternatives to the currency at present • Euro – too few positives • Sterling – under pressure from politics and inflation • Yen – likely downside risk until the Fed baulks at recession risk • Swiss franc – has safe haven status backed by a likely positive interest rate by September…

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Bear Markets – There is Light “Before” the End of the Tunnel

Jul 25, 2022

11:16 am

The month gone by was not too different from the month before. The same factors, i.e., inflation, rate hikes, and impending-recession-haunted markets, and the indices, both headline, and broader markets, dived to a new correction low. The headline indices missed running into the bear market territory by a small margin, and the mid-cap index officially…

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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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