Global Markets Update Commodity prices and global equity markets We think the prices of most commodities will fall over the next couple of years, and that this will prove to be a headwind for many countries’ stock markets. But the strength of that headwind will... 7th October 2021 · 5 mins read
Capital Daily We expect EM LC government bond yields to grind higher Emerging market (EM) local-currency (LC) government bond yields have risen this year, on average, by as much as during the “Taper Tantrum” in 2013. We expect EM LC government bond yields to, in... 7th October 2021 · 5 mins read
Global Markets Update Taking stock of the sell-off in EM LC bonds We expect the yields of 10-year emerging market (EM) local-currency (LC) government bonds to rise over the coming years. But, in most EMs, we think yields will rise by less than the 10-year US... 6th October 2021 · 4 mins read
Asset Allocation Update Infrastructure & reconciliation unlikely to mean Q1 rerun While the large fiscal stimulus passed in the US in the first quarter of this year appears to have been a key reason why equities there outperformed Treasuries at the time, we think that the... 6th October 2021 · 5 mins read
Capital Daily What to make of the US debt ceiling debacle? The longer the current political spat over the US debt ceiling drags on, the more likely it becomes that the resulting uncertainty puts some pressure on “risky” assets. Somewhat counterintuitively... 5th October 2021 · 6 mins read
Capital Daily Chinese equities may underperform even if Evergrande fears fade Even if concerns about potential spill-overs to China’s financial system from troubles at Evergrande fade, we still expect Chinese equities to underperform equities elsewhere over the next two years. 4th October 2021 · 5 mins read
FX Markets Weekly Wrap Dollar continues to march higher ahead of October payrolls In another volatile week, the US dollar continued to appreciate against most other currencies, reaching its strongest level, in aggregate, since last November. In part, the greenback’s rally may have... 1st October 2021 · 9 mins read
Asset Allocation Update Revisiting the relative valuations of US equities and bonds Although the pull-back in the S&P 500 last month was probably influenced by a sell-off in Treasuries (see here), we don’t subscribe to the view that stocks are in a big bubble that bonds are bound to... 1st October 2021 · 3 mins read
Capital Daily Three market trends from Q3 that we expect to continue We think that three recent market trends – underwhelming stock market performance, rising bond yields and a strengthening dollar – are likely to continue. 1st October 2021 · 7 mins read
FX Markets Update Slowing global growth may continue to help the US dollar We think that the ongoing slowdown in global economic growth points to continued dollar strength, which suggests to us that there is significant upside risk to our already-bullish dollar forecast. 1st October 2021 · 4 mins read
China Economics Weekly Power supply steady, heavy industry under pressure Early data suggest that recent electricity rationing may be the result of power companies being unable to keep up with the strength of demand, rather than a substantial pullback in electricity supply... 1st October 2021 · 4 mins read
Capital Daily We doubt the rally in the US dollar is over Even if the US dollar falls back a bit further in the near term, we expect it to resume its recent rally in due course. 30th September 2021 · 7 mins read
CE Spotlight What would an era of higher inflation mean for currencies? We think that a return to a regime of higher and less stable inflation in many major economies would result in a rise in exchange rate volatility and, over time, the depreciation of the currencies of... 30th September 2021 · 14 mins read
Long Run Returns Monitor Long Run Returns Monitor (Sep.) Our monthly Long Run Returns Monitor provides our updated long-term projected returns for major asset classes, as well as a summary of the macroeconomic forecasts which underpin them. All projections... 29th September 2021 · 1 min read
Global Markets Update A deeper dive into Chinese equities’ sectoral performance While financials and real estate have been among the worst-performing sectors in the MSCI China Index this year we think that there may be scope for them, as well as the energy sector, to outperform... 29th September 2021 · 5 mins read
Capital Daily Supply shortages, monetary policy and stock/bond correlations Although we expect bond yields to rise further, we don’t think that would necessarily coincide with the sort of sharp falls in equity prices we saw earlier this week. 29th September 2021 · 7 mins read
