Dec 17, 2013 | Emerging Markets, Featured, Global Economy, US Economy
One of the points we have emphasized to clients in the past two months is that many of our indicators suggest that long rates in the US may not rise as aggressively as the consensus expects. In other words, the Fed might stay more dovish than the market expects and...
Nov 15, 2013 | Featured, Global Economy, Monetary Policy, US Economy
One of the themes that we have been highlighting this year is the growing bubble in corporate bonds. It is pointless in the first instance to discuss whether super easy monetary policy that has fueled this bubble is appropriate or not. The main thing for investors to...
Nov 4, 2013 | Emerging Markets, Featured, Global Economy, Leading Indicators, US Economy
Our real narrow money index continues to decline and is sending an increasingly bearish cyclical signal for the global economy and commodity prices. Our real narrow money index has now declined for 4 months running and is now tracking below 7% for the first time since...
Oct 17, 2013 | Featured, Global Economy, Monetary Policy, US Economy
The economy and financial markets remain in the grips of the most easiest monetary policy the world has ever seen. The balance sheets at the Fed and the BOJ continue to expand at record pace and global real rates have been negative for over 3 years now. Negative real...
Oct 1, 2013 | European Economy, Featured, Global Economy
The notion of a perfect storm is a tired cliché but in Portugal’s case, its use has rarely been more apt. Our view is that the market is underestimating the risks surrounding Portuguese debt roll-over and planned exit from the Troika programme in 2014. According to...
Sep 13, 2013 | European Economy, Featured, Global Economy, UK
Data in the UK have taken an unequivocally positive turn. PMIs for services, construction and manufacturing are at 3 year highs. Furthermore, the underlying picture is healthy, with the new orders to inventory ratio for manufacturing surging to 1.4. This has...
Aug 29, 2013 | Emerging Markets, Global Economy
One concrete example where the recent sharp drawdown in the FX rate may herald better times ahead is in Brazil. As in most other emerging markets, a weaker currency is a double – edged sword. If it happens too quickly it can cause a run on FX reserves and add to...
Aug 21, 2013 | Global Economy, US Economy
The headline above is not a mistake; aggregate debt to GDP is now growing again in the US . This is evident if we look at the broadest measure of credit in the US which rose to a new high of $57 trillion USD in the first quarter of 2013. As a share of nominal GDP this...
Aug 7, 2013 | Featured, Global Economy, Leading Indicators
Industrial production in the G7 has edged up further and this is in accordance with the OECD LEI diffusion index. G7 industrial production is now growing again and based on the upturn in the OECD LEIs observed since late last year we would expect economic activity to...
