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May 2021 Asset Class Returns

Jun 2, 2021

8:52 am

Commentary May was a month where equity markets seemed to struggle a bit for direction, as inflation numbers from the US and some other countries began to show that the economic recovery post-Covid may bring inflation to go along with economic growth. The 1.4% gain in the overall MSCI World was driven by Europe (up…

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President Biden Brings Another Bazooka

May 31, 2021

10:23 am

• Another huge $6 trillion budget plan from President Biden • A focus on infrastructure to keep the US economy • Inflation still at large and surprising to the upside • Calls for earlier US rate rises seem misplaced; however the Fed might be wrong to suppress a rise in long term interest rates •…

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Cryptic markets

May 24, 2021

8:15 am

• Cryptocurrencies under pressure as US and Chinese authorities squeeze Bitcoin • We strongly believe that cryptocurrencies, are here to stay in one form or another • Gold continues to push higher in the wake of crypto problems • US boom hits capacity constraints but they don’t diminish the upside • Europe’s economy, vaccinations and…

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How much inflation do you want before you believe it?

May 17, 2021

8:57 am

• Actual inflation is showing up in the numbers: PPI and CPI surprised to the upside. • US wage pressures are starting to build • COVID brings a confluence of additional factors that adds to the inflation argument • Bond markets have been surprisingly muted • Equity markets are favouring Financials and Materials over Technology…

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