Health care stocks have underperformed the US broad market by over 20% since the beginning of 2023. Indeed, vaccination campaigns during the pandemic years had initially boosted health care companies’ earnings. However,…
Why the US could get a jobs recession without a GDP recession, as happened in 2001, and what it means for stocks and bonds. Plus, an update on the Joshi rule.
Lending standards continued to tighten for most loan categories in Q1 2024. US banks reported tightening lending standards for C&I and CRE. For real-estate-backed loans to households, lending standards tightened further…
Transit through the Suez Canal has hit a new low. The 7-day moving average of daily ship transit calls is currently at 30, less than half of what it was at the end of 2023. The decline in volume has been even more severe, with…
The Reserve Bank of Australia (RBA) left its policy rate unchanged at 4.35% at its May meeting, in line with expectations. The statement highlighted that inflation continues to moderate, though at a slower-than-expected pace.…
European retail sales were stronger-than-expected in March. They grew by 0.7% y/y from an upwardly revised 0.5% contraction in February, upending expectations that they would continue to decline. Improved sales in food…
Our Portfolio Allocation Summary for May 2024.
According to BCA Research’s US Bond Strategy service, while US economic data clearly show that labor demand has slowed from its peak two years ago, it isn’t yet clear whether this slowing represents a re-normalization…
Chinese investable stocks have rallied on a combination of investors’ hopes for stimulus, revival in the global manufacturing cycle and cheap valuations. The MSCI China index and the Hang Seng have both gained close to 15%…
Investors generally associate higher investment rates with higher rates of growth. Indeed, companies at the beginning of their life cycle with a lot of high ROI opportunities will generally be more willing to invest their capital…