The China State Council meeting on July 7, chaired by Premier Li Keqiang, sent a somewhat ambiguous message on the direction of China’s monetary policy. The press release from the meeting stated that the country will…
The growth acceleration narrative that drove much of the performance of global financial markets in 2021 is showing signs of fraying, led by US bond yields. The 10-year US Treasury yield continues to drift lower, hitting an…
Highlights Inflation is set to decelerate, job creation has a speed limit, and super-spreaders of new-variant Covid-19 infections will create speed bumps in the economy. This means that in the second half of the year: Bonds…
GFIS Model Bond Portfolio Q2/2021 Performance Review & Current Allocations: Hitting A Few Roadblocks
Highlights Q2/2021 Performance Breakdown: Our recommended model bond portfolio underperformed the custom benchmark index by -6bps during the second quarter of the year. Winners & Losers: The government bond side of the portfolio…
Highlights Economy – The endpoint of easier-for-longer monetary policy may be coming into view: Elevated inflation readings and discomfort among more hawkish FOMC members may signal that a monetary policy inflection is on the way…
Highlights Three distinct forces are likely to make South Asia’s geopolitical risks increasingly relevant to global investors. First, India’s tensions with China stem from China’s growing foreign policy assertiveness…
Highlights Gold is – and always will be – exquisitely sensitive to Fed policy and forward guidance, as last month's "Dot Shock" showed (Chart of the Week). Its price will continue to twitch – sometimes…
Highlights The US dollar will reach its ultimate high in the next deflationary shock. The swing factor for dollar demand is portfolio flows. In the next shock, portfolio flows will surge into US investments, driving up the US dollar to…
Dear Client, China Investment Strategy will take a summer break next week. We will resume our publication on July 14th. Best regards and we wish you a happy and healthy summer. Jing Sima, China Strategist Highlights A USD…