Europe Commercial Property Update Global property returns not expected to defy gravity The exceptionally strong rebound in commercial property returns has been clear from the middle of last year. While this came earlier than most expected, we think it reflected special conditions and... 11th February 2022 · 3 mins read
FX Markets Update Relative equity performance and the US dollar Although a major drop in US equities poses a key downside risk to our view that the US dollar will rise, we doubt the slight underperformance of US equities relative to global equities that we... 10th February 2022 · 4 mins read
US Economics Update Labour market shortages stabilising The upward revision to household employment and the labour force imply that the labour market recovery has been a little stronger than we previously believed, but measures of slack suggest that labour... 10th February 2022 · 4 mins read
US Housing Market Update Do not conflate real assets with inflation hedges We believe the link between real estate cashflows and inflation to be overplayed, a view that is backed up by the evidence of the last 44 years. But there are exceptions. One of which is low vacancy... 10th February 2022 · 4 mins read
US Housing Market Update Ballooning mortgage size not a risk to the market The average home purchase mortgage size has ballooned over the past couple of years, but a concurrent rise in down payments will protect lenders from all but the most severe of house price shocks... 10th February 2022 · 3 mins read
Global Markets Update Quantitative tightening and Treasury term premia We think upcoming “quantitative tightening” by the Fed will contribute to further increases in the yields of long-dated Treasuries this year and next. 10th February 2022 · 4 mins read
US Data Response Consumer Prices (Jan.) The 0.6% m/m rise in consumer prices in January was slightly stronger than we had expected and illustrates that, even as the earlier upward pressure from rising energy prices and goods shortages fades... 10th February 2022 · 3 mins read
Asset Allocation Update Assessing the risk of contagion from a slump in US equities One of our key calls for 2022 is that mid- and large-cap equities in the US will generally underperform those in other developed markets, and only fare about as well on average as those in emerging... 10th February 2022 · 3 mins read
Canada Economics Update What if oil prices remain higher than we expect? Higher oil prices would not provide as large a boost to the Canadian economy as in the past but, at a time when GDP is already set to rise above potential and inflation is well above target, they... 9th February 2022 · 3 mins read
Energy Data Response US Weekly Petroleum Status Report Crude oil and product stocks fell last week, reflecting robust US demand. However, we think growth in product demand will slow over the course of this year in tandem with slower growth in the US... 9th February 2022 · 2 mins read
US Housing Market Chart Pack House price and rental growth to ease in 2022 House prices and rents both boomed in 2021, but are set for a quieter 2022. Mortgage rates are now rising and we expect the 30-year rate will end the year at around 4%. Combined with the rise in house... 8th February 2022 · 9 mins read
Canada Data Response International Trade (Dec) Goods trade moved into a modest deficit in December but, with oil prices rising sharply since then, it should return to surplus in January. 8th February 2022 · 2 mins read
US Data Response International Trade (Dec.) The solid gains in both exports and imports in December are a signal that global supply chain problems are easing, although the further widening in the trade deficit suggests that net trade will be a... 8th February 2022 · 2 mins read
US Economics Weekly Shortages appear to be stabilising As it turns out, employment gains were much stronger than previously thought over the final few months of last year and the Omicron wave did little to slow the pace of growth in January. With the... 4th February 2022 · 6 mins read
Canada Economics Weekly Omicron disruption already in the rear-view mirror The data releases this week suggest that the Omicron wave was more disruptive than we anticipated, but there are already positive signs that the economy will strongly rebound this month. 4th February 2022 · 5 mins read
US Data Response Employment Report (Jan.) The 467,000 gain in non-farm payrolls in January is even stronger than it looks, as it came despite the spike in absenteeism driven by the Omicron virus wave and was accompanied by significant upward... 4th February 2022 · 2 mins read
