Developed Countries
Magnificent Seven leadership is neither a new nor an unnatural phenomenon. There is no shortage of reasons why equities might have already made a top, but investors should not be tricked into thinking that the rally was somehow specious.
Japanese economic data delivered a negative surprise on Friday. Q2 GDP growth was revised down from 1.5% q/q to 1.2% q/q, below expectations of 1.4% q/q. The downwards revision reflects a 1% q/q decline in business spending (down from the preliminary…
Overall, the Fed’s latest Beige Book provided a pessimistic assessment of the US economy. Although the report characterized tourism spending as “stronger than expected,” it also noted that pent-up demand for leisure travel has now likely been satisfied and…
According to BCA Research’s Foreign Exchange Strategy service, the counter-trend bounce in the dollar will continue. Factually, the trend in the dollar has depended on both global growth dynamics and the relative health of the US economy. From higher…
In this week’s report, we assess the key reasons why the dollar has risen, and if that is set to continue.
Strategists arguing for an end of the outperformance of US equities over international stocks have pointed to the lofty valuations of American stocks vis-à-vis their global counterparts. Moreover, they have highlighted that US tech companies, which have led…
Since the beginning of the year, our equally-weighted global cyclicals index has outperformed equally-weighted defensives by about 13%. As the chart above shows, this relative performance trend has been extremely positively correlated with US 10-year…
Carbon credits as an asset class are becoming increasingly investable. Given that the structural bull case for this asset class is compelling, strategic investors should long carbon credits. However tactical investors should book profits or consider merits of a short position, since prices are likely to correct over the next 12-24 months.
Recent Eurozone economic data indicate that restrictive monetary policy and the global manufacturing downturn are weighing down on the region’s economy. In particular, new orders at German factories plunged by 11.7% m/m in July – significantly below…