Dear Client, Thank you for your continued readership and support this year. This is the last European Investment Strategy report for 2021. In this piece, we review ten charts covering important aspects of the European economy and…
Highlights Our three strategic themes over the long run: (1) great power rivalry (2) hypo-globalization (3) populism and nationalism. The implications are inflationary over the long run. Nations that gear up for potential conflict and…
Highlights 1. How will the pandemic resolve? 2. Will services spending recover to its pre-pandemic trend? 3. Will we spend our excess savings? 4. How will central banks react to inflation? 5. Will cryptocurrencies continue to eat gold…
Highlights Omicron vs. The Fed: The new COVID variant has thrown a growth scare into markets, but the bigger concern is the Fed belated playing catch up to high inflation and low unemployment. Fade the Omicron bond rally, and position…
The RBA kept monetary policy unchanged at its Tuesday meeting. Governor Philip Lowe sounded cautiously optimistic in his policy statement. He noted that the Australian economy is on track towards recovery following the Delta-…
Highlights Chart 1Curve Flattening Is Overdone Fed Chair Jay Powell made big news last month. During Senate testimony, Powell not only signaled that the Fed is likely to accelerate the pace of asset purchase tapering when it…
The PBoC’s decision to cut the reserve requirement ratio by 50 bps is unlikely to be a game changer for the Chinese economy. The more important drivers of China’s business cycle and financial markets are credit growth…
Highlights Economy: Chair Powell retired the term “transitory” last week, signaling that the Fed may take a harder line on inflation in the coming year: The Fed coined the transitory term to describe the current inflation…