Insights

MORENA has once again swept the Mexican election: Claudia Sheinbaum will be president, with little to no constraint in Congress. All in all, Mexican politics will remain stable and overall supportive of markets. In the medium term, fiscal spending will return to conservatism and the constitutional r...

At the asset class level, the GAA Quant model is overweight equities, underweight bonds, and neutral cash....

Our Portfolio Allocation Summary for June 2024. ...

According to BCA Research’s Commodity & Energy Strategy service, commodity prices typically rally toward the end of the business cycle. In the past six recessions, the S&P 500 peaked before commodity prices. While there is significant variability across recessions, on average, the S&amp...

The US economy is in the “Overheating” phase, so stronger growth brings higher inflation. Tight monetary policy means recession is still likely over the next 12 months. Stay defensive. ...

Generative AI-related rally resumed in May. Much of the recent market gains are down to excess liquidity that was begotten by the massive pandemic stimulus, creating a dichotomy between multiple economic challenges and exuberant markets. The Fed is unlikely to step in to prevent the bubble as it is ...

European stocks have massively underperformed US ones since the GFC. Demographics and productivity say this trend will continue, but is that really so? ...

In this report, we gauge the outlook for the dollar given client visits in Africa. ...

MacroQuant sees significant downside risks to stocks over a 1-to-3 month horizon and suggests increasing allocation to long-term bonds. The model favours defensive equity sectors but is also hedging its bets by overweighting materials. ...

Democrats remain slightly favored for the White House because they are the four-year incumbent presidential party and the economy is not in recession. But if the unemployment rate rises in the lead up to November, then Biden and Democrats will become disfavored regardless of Trump’s convictions. ...