Market Insights

Stocks ・ Bonds ・ Macro ・ Asset Allocation

24 May 2023

Are Low US Equity Risk Premiums Really Bearish for Stocks?

US equity risk premium has reached its lowest point in a decade, reminiscent of the period just before the Global Financial Crisis. That doesn’t sound good, but are things different this time?

Stocks ・ Bonds ・ Yields

28 April 2023

Could debt ceiling worries spillover to stocks?

Failure by Congress to raise the $31.4 trillion debt ceiling could have huge economic repercussions. These fears are starting to show in the treasury market and could spill further into the equity market.

Bonds ・ Macro ・ Asset Allocation

28 September 2022

How are central banks affecting your mortgage?

Wild currency moves and rapidly rising interest rates have added to the economic challenges consumers face. But how exactly do central banks affect your mortgage and what does the future hold? And as a homeowner, ...

Bonds ・ Yields ・ Fixed Income

25 August 2022

Equities can’t shrug off bond yields dominance

The rise in global bond yields, fuelled by rising interest rates, has become one of the central themes affecting stock markets. This week’s Jackson Hole Symposium sets the stage for bond market action for the rest of 2022.

Stocks ・ Bonds ・ Macro ・ Fixed Income

30 May 2022

“TINA is dead.” Or not.

The stock market had an epic run after the 2008-09 financial crisis, thanks in part to rock-bottom interest rates, which encouraged investors to pile into equities as “There Is No Alternative” (TINA). Now that the Fed ...

Stocks ・ Bonds

25 April 2022

Positive real rates, the latest headwind for stocks?

US inflation-adjusted bond yields are about to turn positive for the first time since March 2020 in a surge that is adding further pressure on rate-sensitive corners of financial markets. What are the implications for ...

Bonds ・ Fixed Income ・ China

11 March 2022

Looking for a haven with yield in China bonds

After a strong year, Chinese government bonds remain an area of interest for investors seeking yields that go some way to offset inflation as well as a haven from the war in Ukraine.

Stocks ・ Bonds ・ Asset Allocation

8 February 2022

Safe Haven Assets

The recent volatility in financial markets took major indices into correction levels, and even traditional safe havens such as Treasuries and gold offered limited protection. As uncertainty remains surrounding central ...

Bonds ・ Macro ・ inflation

21 January 2022

Bond markets could be pricing in too many hikes

The yield on 10-year Treasuries just struck a 2-year high and Fed funds futures are pricing a near certainty that the Fed hikes in March with more to follow from the Fed and other central banks in 2022. Is that too much?

Bonds ・ Macro

26 November 2021

Jerome Powell’s 2nd term: Fade the Hawks?

The reappointment of Fed Chair Jerome Powell sparked some unexpected volatility across markets, led by a jump in Treasury yields. But should we really expect Jay to be that hawkish?

Stocks ・ Bonds ・ Asset Allocation

6 October 2021

Did September kill the 60/40 portfolio? – Asset Allocation

While investing 60% in equities and 40% in bonds was a safe play for decades, this strategy has faced some obstacles in recent weeks. But should we forget decades of results or just hold steady and look through the noise? Are there ways to ...

Bonds ・ Asia ・ Markets

31 March 2021

Chinese bonds find new acceptance in all 3 world bond indices

China is starting to compete for foreign capital inflows. With high quality bonds, other nation’s debt might lose their shine. Napoleon was right: China is awakening, and the world trembles.