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Staying with an accommodative Fed but switching away from China

Aug 24, 2021

11:24 am

• The Fed flip flops of when it will taper but retains an air of monetary accommodation. • Jackson Hole meeting could be a source of fixed income market volatility. • Exaggerated sell-off of the equity materials sector and commodity markets. • US ‘economy re-opening stocks’ have suffered marked losses over the month. • Investors…

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Much to Ponder on, particularly in China

Aug 17, 2021

8:37 am

• US Inflation still flying high, but markets concerned with the impact of delta variant • US inflation data appears to understate inflation in residential rents • Europe providing leadership in equity markets • China announces a five-year plan of broadening regulation • We see potential material risks to the downside for Chinese equities if…

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Disruptive Businesses – Here to stay!

Aug 13, 2021

1:06 pm

2021 has been an exciting year for investors thus far. Despite a big economic setback caused by Covid19, capital markets have been buoyant led by relentless money supply by central bankers and surprisingly solid growth in corporate profits. The long queue of IPOs and record amounts of fundraising (highest in the last two decades) reflect…

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Is the Fed in a Hole?

Aug 10, 2021

5:32 am

• Higher inflation and lower unemployment present a challenge to the Fed’s ultra-loose monetary policy • Near-term rise in COVID cases may provide an excuse to maintain an easy policy stance – for the moment • US bond yields rise but will still likely be range-bound in the very near term • The upcoming Jackson…

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