Plenty of Reasons to be Concerned

May 5, 2022

6:17 am

• US equity sell-off has gained momentum • Central bankers, meanwhile, are accelerating their monetary tightening • Growth stocks are at the epicentre of the current sell-off with still more downside risks • Latin America is ahead of the rest of the world in its tightening cycle – a positive for the local asset markets…

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A Market Without Bounds

Apr 26, 2022

10:35 am

• Sharp corrections in corners of the financial markets are an indication of lurking risk • Yen moves to a two-decade low against the dollar • US two-year yields have increased fivefold in a few months • US equities lack technical support as the market level moves into no man’s land • S&P500 at risk…

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Taylor Rules!

Apr 20, 2022

4:31 am

• The Taylor Rule implies that Fed funds rate could hit 7-10% • We fear that higher rates may do little to curtail demand growth and help ease inflation • The Fed can try to control excess demand but have little impact on supply disruptions • Markets remain at risk; bond yields to go higher,…

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The Bond Reset is Here. Now What?

Apr 12, 2022

8:52 am

• The risk that persisting inflation presents is still a big deal for government bonds • Ongoing inflation risk undermines the safe-haven status of government bonds • Higher yields in riskier credit markets now more interesting to income seekers • There’s more logic to the equity market sell-off with defensives outperforming The markets just can’t…

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