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Normalization Post Covid

Nov 11, 2021

10:20 am

Finally, the US Fed has turned towards the normalization of its economy. To stimulate the economy after the Covid outbreak, the US had increased the money supply by roughly 30% in less than two years. In its latest meeting, the Fed announced tapering of quantitative easing (QE) by USD 15 billion a month. At that…

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It’s all a lot of fun until the music stops playing

Nov 9, 2021

6:31 am

• Central banks turning upbeat on economy on belief inflation to prove less transitory than thought. • Equities appear set to extend gains as central banks step away from tightening. • Third-quarter results so far have been robust, although economic data remains mixed, and markets look for greater clarity from the Fed. • Like some…

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Is there a mini-tantrum brewing

Nov 2, 2021

11:56 am

• The divergence between the Fed’s view and the market’s view on rates is growing • Higher yields have not hindered a surge in equities this month • The real test for the bond market lies in the future, not now • Energy prices keep surging as the northern winter approaches, adding inflation risk The…

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A rocky road to recovery

Oct 26, 2021

5:45 am

• The market is starting to buy the inflation argument • Although Central Banks are still divided, the momentum is growing • Supply chain issues are becoming more visible, and energy price rises might be sticky • Bond markets are far more nervous about the outcome than equities The post-COVID recovery is turning out to…

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