Insights

Uncertain trade policy and a volatile geopolitical environment fed through to financial markets in the first half of the year. Towards the end of the period, markets shrugged off all economic and geopolitical worries and refocused on the potential of AI. In this edition of our newsletter, we apply ourselves to anticipating what lies ahead, […]

Policy uncertainty, soft economic data & cracks in the US AI dominance narrative have caused US stocks to take a breather. Europe & Chinese markets have seen appreciation owing to undervaluation and idiosyncratic factors even though economic growth remains weak. The India story remains intact even though markets have seen a significant correction from overvalued

We are still in the early days of 2025, and year-end projections are already at risk. The narrative around US dominance over the future of AI was challenged by a hitherto little-known company from China. The fires in California were a reminder that even the most affluent parts of the world are not immune to

As we step into a new year, we take this opportunity to share the first part of our special two-part edition on market perspectives. This edition highlights Wall Street’s outlook for 2025, offering an overview of key trends and insights shaping market sentiment. Later this month, we will follow up with the second half, where

US stocks continue to deliver very strong performance, recently buoyed by data indicating a strong economy as well as optimism around initiatives announced by the incoming administration in the US. Sentiment is strongly and almost unanimously bullish. We take a somewhat more nuanced view and advise investors to remain diversified and focused on quality.

US stock markets took a breather after a 6-week ascent, shifting focus on to the upcoming election and its potential impact on the economy. In China, a slew of stimulus measures by the authorities is giving rise to cautious optimism, but challenges remain.

The Federal Reserve has shifted its focus from solely addressing inflation to balancing inflation control with supporting employment. Inflation, as measured by the personal consumption expenditures (PCE) price index, held steady in July at 2.5%, while the core gauge was 2.6%. Fed Chair Jerome Powell indicated that inflation has been largely tamed through high interest

The hike in interest rates by the Bank of Japan led to a sharp correction in USDJPY and an unwinding of the ‘carry’ trade. While this was expected, the effect was magnified by the release of softer than expected employment data in the US, which led to some panic selling. We believe some further volatility

Politics take centre stage in the markets. Meanwhile, the US economy is experiencing slowing growth, rising unemployment, and cooling inflation, suggesting imminent interest rate cuts. In China, efforts to stimulate local demand are falling short, and the banking sector is under significant stress.

US equities surge as S&P 500 hits 25 all-time highs this year, driven by tech stocks and semiconductor outperformance. Despite slower GDP growth, concerns arise over consumer fatigue and rising default rates, while labor market strength shows signs of softening. Gold’s prominence grows amid central bank purchases and other major economies initiate interest rate cuts.