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Overview: Inflation genie back in the bottle?Last week was another good one for most investors. In sterling terms, the strongest equity markets were in Europe with the DAX up 4.5% over the week, the biggest winners being small and mid-sized firms. Risk...

Inflation genie back in the bottle? This week was another good one for most investors. In sterling terms, the strongest equity markets were in Europe with the DAX up 4.5% since last Friday afternoon. The biggest winners have been small and mid-sized...

Not so Sunny for the Solar Stocks  It’s been a cloudy year for Solar Energy stocks this year, the MAC Global Solar Energy index which tracks 41 of the largest Solar Energy related companies worldwide is down over 42% YTD and over...

Overview: Back-pedalling central bankersThe turnaround rally in stock and bond markets – prompted by dovish central bank comments – petered out towards the end of last week, with central bankers at pains to reverse their messaging, or at least reaffirm their commitment...

The turnaround rally in stock and bond markets – started by last week’s dovish central bank comments – petered out towards the end of this week, with central bankers seemingly at pains to reverse their messaging or at least reaffirm their continued...

Overview: Central bank dovishness proves contagiousLast week, we noted how negative sentiment in stock markets can become a self-perpetuating destructive force for an entire economy as the investing public feels the heat of feeling poorer (at least on paper). But seven days...

Just how much change a week can bring to markets was amply visible during the last seven days. Last Friday we wrote about how negative sentiment in stock markets can turn into a self-perpetuating destructive force for an entire economy as the...

Overview: The resilience narrative comes under pressureIn recent times, a fall in bond yields (and therefore a rise in bond prices) would go alongside rises in equity prices, particularly the mega-cap growth consumer-related techs like Amazon, Alphabet (Google), Microsoft and Apple. However,...

A potentially meaningful change in correlations happened this week. In recent times, a fall in yields (and therefore a rise in bond prices) would go alongside rises in equity prices, particularly the mega-cap growth consumer-related techs like Amazon, Alphabet (Google), Microsoft and...

Overview: Bond yield volatility has markets guessingWhile the human suffering in the Middle East conflict worsened, capital markets have still not meaningfully acknowledged the rising geopolitical risk, beyond the slight increase in oil prices that was already under way a week ago....

While the human suffering in the Middle East conflict worsened, capital markets have still not meaningfully acknowledged the rising geopolitical risk, beyond the slight increase in oil prices that was already under way a week ago. Nevertheless, the volatility in long bond...

While the human suffering in the Middle East conflict worsened as expected this week, it has not yet spread further across the region. Therefore, and as we wrote last week, markets have not particularly acknowledged the rise in geopolitical risk temperatures beyond...

Overview: Capital markets and warThe world took a turn for the worse last week, from a humanitarian point of view. The surprise element of the attack together with the current global economic backdrop, drew immediate parallels with the Yom Kippur War of...

This past week saw the world most certainly taken a turn for the worse from a humanitarian point of view. Pictures of the atrocities committed in the Middle East, and indeed the timing, drew immediate parallels with the Yom Kippur War of...

Overview: Recession fears returnThe balmy autumn temperatures have continued into October, but September’s market chill has also carried through and that is more troubling. Continuing the recent trend, last week saw a further rise in global long bond yields, despite some weakness...

The balmy autumn temperatures have continued into October, but the market chill that has also carried through from September is more troubling. We discuss the asset class returns of the past month and quarter in our next article.  Financial markets are in...

Overview: Economic resistance is about to be testedSeptember is rarely a great month for investors, and last month proved no exception. Broadly, both equities and bond values declined and there is increasing sentiment that the 2023 market recovery is running out of...

Historically September has on average not been great for investors, and as it turns out this year is no exception to that norm. Both equities and bond valuations have declined and even though equities have not materially moved up or down when...