With less than three months to the end of the year, returns so far in 2024 is set to be among one of the best in recent years. The fear that the U.S. and global economy will go through a deeper slowdown amid the most aggressive monetary policy tightening in four decades has been quashed,ContinueContinue reading “The Touchdown: Tailwinds from Rate Cuts and Chinese Policy Stimulus”
Tag Archives: federal reserve
Rotation Within and Across Asset Class
In our latest publication, we highlighted that the U.S. economy is potentially at a tipping point where financial conditions are set to tighten as inflation continues to fall and the Fed has been too hawkish relative to economic fundamentals. We wrote: Since July 11th – when U.S. CPI inflation data showed price pressure continues toContinueContinue reading “Rotation Within and Across Asset Class”
Déjà vu on Rates and Justifying Equity Style Divergence
It certainly feels like déjà vu all over again looking at the evolution of policy rate cut expectations in the U.S. this year. At the beginning of 2023 traders were pricing in one rate cut for the remainder of the year. Instead, the Fed raised policy rate by another 100 bps in the following quarters,ContinueContinue reading “Déjà vu on Rates and Justifying Equity Style Divergence”
Gradually, Then Suddenly: Beware of the Lag Impact of Policy Tightening
Green shoots in the economic data and the associated change in market narrative from hard landing six months ago to no landing currently have bolstered the performance of equities and pushed bond yields to near previous highs. January’s retail sales number shows consumers in the U.S. spent 3% more relative to in December, outpacing analysts’ContinueContinue reading “Gradually, Then Suddenly: Beware of the Lag Impact of Policy Tightening”
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