by David Hill | Aug 15, 2019 | UK
UK miners have performed well over the last year, returning 13.4% against the FTSE-All Share’s meagre return of 1.5%. Accelerating iron ore prices this year has driven this outperformance and the top chart illustrates that this relationship holds over long periods. In...
by David Hill | Jul 18, 2019 | Asia
Our leading indicators for India continue to fly high, providing a useful lead for Indian equity performance so far this year. Following Modi’s convincing re-election we expect to see a continuation of structural reforms that enhance the productive capacity of India’s...
by David Hill | Jun 21, 2019 | Asia, Emerging Markets
Exit polls predict that Modi should return to power in India with another 5-year term. The election was a blot of uncertainty on the landscape but, barring a Modi loss (votes are counted on the 23rd May), it should mean no major deviation from the root-and-branch...
by David Hill | Feb 8, 2019 | UK
This post was taken from our January 22nd weekly report. In line with the global rebound, UK equities have regained considerable ground in January following the fourth-quarter sell-off. However, consumer staples have underperformed, creating a sharp divergence with...
by David Hill | Jan 25, 2019 | US Economy, US Equities
This post was taken from our January 8th weekly report. We would characterise US equity indices today as being in a bear market. The official definition is a 20% decline from the recent high, close to close, but what does this mean in practice for investors? (The...
by David Hill | Jan 18, 2019 | US Economy
This post was taken from our December 4th weekly report. We wrote last week about the absence of bottoming signals for the S&P. From a price perspective, there was little to suggest a sustainable rally was on the cards, as few of the usual signs of selling...
by Bill | May 12, 2017 | Emerging Markets
Liquidity conditions have deteriorated meaningfully for EM equities. The left chart below shows that the steep drop in G7 Excess Liquidity points to a risk of much lower EM equity prices in about 3-4 months’ time. This materially worse backdrop for EM equities is...
by Bill | Mar 24, 2017 | US Equities
(from our Weekly of 21st February) As we have been noting, the market remains in a risk-on regime, with positive momentum, falling volatility and confirmation from various inter-market relationships such as cyclical stocks outperforming high dividend stocks, high...
by Bill | Mar 3, 2017 | US Economy
For the past few months, we have noted in our Leading Indicator Watch publications that financial market inputs to our leading indicators were running far ahead of actual hard economic data. The same is true for survey data vs real economic data. While we have seen...
