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MARKET COMMENTARY

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Still a Long Way from Normal

Sep 1, 2021

12:27 am

• Normal Fed monetary policy is still a long way away as Jerome Powell presses the ongoing near-zero rates • The bond market embraces the loose money and leaves longer-dated bond yields close to 1.30% • High yield bonds continue to accrue return • Equity markets enjoy loose monetary conditions but may fret about the…

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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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