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As we had predicted in our newsletter last year, financial markets did not conform to the dominant narrative at the time.Neither the trajectory of US interest rates, nor the reopening of the Chinese economy – both of which were expected to drive markets – played out as expected.We are pleased that we at Asas Capital

Things are unravelling pretty fast for the United States. Its national debt continues to balloon. It’s deficit continues to widen, and is expected to keep doing so for the next decade. Its politicians can’t seem to agree on anything and keep playing ‘extend and pretend’. Its attempts to bring manufacturing back home in an economically

The conflict in the Middle East is overshadowing other market news for now. This ‘risk-off’ sentiment is likely to continue until one of two things happen. Either the conflict comes to a close, one way or another. Or it continues to simmer for an extended period, and the market adjusts and starts making better informed

The sentiment in markets is one of fear and uncertainty. On the one hand is the worry that the Israel-Hamas war will metastasize into a wider conflict. On the other is the stated commitment by the FOMC to continue with a high interest rate regime despite the relentless rise in long-term yields, and the impact

Market sentiment has become extremely bearish. The S&P 500 has broken through support at 200 DMA, CNN’s Fear and Greed Index is in “Extreme Fear” territory and strong earnings report by most of the “Magnificent Seven” stocks have been glossed over. Uncertainty around the direction of the conflict in Israel will likely keep markets nervous

Markets had a rellef rally last week. As we mentioned a couple of weeks ago, the technicals were oversold, and looking for a positive trigger to go up. That trigger came this week with the FOMC decision to hold interest rates at current levels, as well as softish data on jobs and inflation. If the

As expected, markets focused on economic data to decide on next steps.  Both GDP and employment data suggest that the economy is starting to cool, which should give the Federal Reserve support to pause its hiking cycle.

Several important events took place last week. Nvidia beat already elevated expectations by a wide margin for the second time in a row. The Federal Reserve reiterated in no uncertain terms its intention to keep interest rates ‘higher for longer’. And the BRICS group added six new countries and now represents almost a third of

Contrary to expectations at the start of the year, US stock markets have delivered strong returns in 2023. Investor sentiment has also swung from extreme pessimism in October 2022, when markets had corrected sharply, to extreme bullishness in July 2023.  Headline economic data supports this change in mood. GDP data reflects an economy that has