Feature Desynchronization To Continue This year has been characterized by strong growth and asset performance in the U.S., and weakness everywhere else. While U.S. stocks are up by 10% year-to-date, those in the rest of the world have…
Highlights The indicators that led the EM selloff continue to point to more downside. Meanwhile, broader EM valuation and positioning indicators have not yet bombed out to warrant bottom fishing. In China, policymakers are not yet…
Turkey's unorthodox macroeconomic policies have backfired. The pursuit of economic growth at all costs has created major macroeconomic imbalances including surging inflation, a large current account deficit, extreme reliance on…
Highlights It has not been a lot of fun being a corporate bond investor in 2018. Global credit markets have struggled to deliver positive returns, amid a news flow that has been overwhelming at times. Geopolitical uncertainty, shifting…
Highlights Chart 1Yield Curve Suggests GDP Growth Has Peaked Last month we learned that the U.S. economy grew 4.1% in the second quarter, the fastest pace since 2014. The gap between year-over-year nominal GDP growth and the…
Highlights Global QE has made bonds as risky as equities. Thereby, global QE has forced investors to accept identically depressed returns from equities and from bonds, requiring equity and other risk-asset valuations to surge. The…
Highlights FTSE100 = Overweight global Oil and Gas in pounds. Eurostoxx50 = Overweight global Banks in euros. Nikkei225 = Overweight global Industrials in yen. S&P500 = Overweight global Technology in dollars. Of these four…