Aug 9, 2018 | China, Global Economy
With China taking the brunt of the escalating trade war, we have identified several economies that could benefit from China’s loss (assuming that President Trump continues to focus on China and does not pursue blanket tariffs on all exporting nations). To gauge this,...
Jul 26, 2018 | Global Economy
Having suffered at the hands of the protracted drawdown in global copper prices over the course of 2011-2015, Chilean copper production has recovered in line with the rally in prices since the beginning of 2017. This in turn has allowed the Chilean peso-copper...
Jun 13, 2018 | Featured, Framework, Global Economy, Japan, US Economy, US Equities, Whitepaper
Recessions are like death – it’s not a matter of if they will happen, but when. Morbid? Perhaps, but as Steve Jobs put it, “Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life… death...
Jun 7, 2018 | Emerging Markets, Global Economy
With the rise in the USD, UST yields and LIBOR-OIS, it is key to know where most offshore dollar leverage lies. The top-left chart shows the big picture – worldwide, there is over $14 trillion of USD claims held outside of the US (BIS data). Most of these are...
Mar 23, 2018 | Global Economy, US Economy
This post is taken from our March 6th weekly report. Once again, trade wars are a potential risk, with Donald Trump threatening to impose tariffs on steel and aluminium imports, and other countries responding that they may impose retaliatory taxes on US goods. The...
Nov 18, 2017 | Global Economy, US Economy
We continue to see a higher dollar as the path of least resistance into year end. In addition to extreme short positioning and some buy signals that we have flagged over the past few weeks, a number of other supportive factors are starting to come into play. The...
Nov 3, 2017 | Global Economy, Japan
Much in the way that monetary stimulus has turbocharged equities, unprecedented low interest rates in developed and emerging markets have artificially compressed credit default swap spreads. As the charts below show, CDS spreads are anchored at the bottom end of the...
Sep 22, 2017 | Framework, Global Economy
In addition to our usual shorter blog posts, we will be posting a series of longer, more in-depth posts that illustrate our framework, and explain how we look at markets and the economy. In this first post, we tour through the work of Hyman Minsky and Charles...
Aug 5, 2017 | Emerging Markets, Global Economy
The macro-economic landscape has profoundly changed since the financial crisis. Developed markets deleveraged, and emerging markets became the engine of global credit and money growth. The top-left chart from the BIS shows this very clearly. EMEs (emerging market...
