Economy
The latest hard data out of the US signals trouble for the economy, prompting caution on US equities. While Q1 growth was revised up slightly from -0.3% to -0.2% quarter-on-quarter, consumer spending slowed and was revised down from 1.8% to 1.2%.…
President Trump’s trade truces gave a respite to global markets, but a bigger risk lurks around the corner. Unsustainable public debt dynamics in the US demand higher bond yields, which can push the economy into trouble. The Republicans’ growth-boosting…
This Insight looks at the implications of the RBNZ’s rate cut on New Zealand assets.
Rising bond yields may present an even greater danger to the global economy than the trade war. With equity valuations no longer discounting much economic risk, investors should position themselves defensively.
Chinese tourism will continue growing, but investors should be mindful not to overpay for Chinese tourism stocks by extrapolating their past double-digit revenue growth into the future.
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Food For Thought
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US: Hard And Soft Data Are Converging
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US: Hard And Soft Data Are Converging
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The gold-to-oil price ratio seems tactically overextended, but global macro drivers suggest it will rise further. The gold bull run is still relatively young and not yet stretched compared to rallies from the past 50 years. Importantly, ongoing…
The latest political developments in Argentina increase the odds of further liberalizing reforms and solidify the economy’s structural upside. First, the libertarian governing party came out on top in Buenos Aires’ legislative elections. While municipal…