Signals from the bond markets
Through the course of 2018, major central banks, such as the Fed and the ECB, were gently tightening monetary conditions following the strength of the global economy in 2017. Economic growth had improved and inflation expectations had recovered back towards target levels following nearly a decade of monetary stimulus. Tightening in the US can be […]
Central Bank Liquidity and the Repricing of Risk (Part II)
As we began discussing in Part I of this blog entry, the research team at Montaka Global recently explored some of the major dynamics occurring in the fixed income markets, how they may impact stocks and potentially reveal some perspectives on what may lay ahead in 2019. Below is the continuation of that conversation, highlighting […]
Central Bank Liquidity and the Repricing of Risk (Part I)
The research team at Montaka Global recently explored some of the major dynamics occurring in the fixed income markets, how they may impact stocks and potentially reveal some perspectives on what may lay ahead in 2019. Below is a summary of some of the key thoughts and observations that we explored. Central Banks are Tightening […]
The Tariff Shakeup
The tariffs that the U.S. has imposed on China have featured heavily in the media. This retreat from the notion of globalization – a tenet that has guided trade discussions for the past few decades – is harming the relationship between the U.S. and China, and is creating immense uncertainty for companies. Less well-understood is […]
Brexit’s Week of Mayhem
This week British members of parliament are debating Prime Minister Theresa May’s 585-page Brexit draft withdrawal agreement. Although it was approved at a special EU Brexit summit in Brussels last month, May faces an uphill battle in the UK with over 100 Conservative and Democratic Unionist MPs denouncing the deal before debate had even begun. […]
Crinkles in the Credit Market
There are countless nuance and peculiarities stitched into the fabric of every financial market across the world; from equities, commodities, foreign exchange and credit, there are an abundant number of imperfections. Today we will explore a few crinkles in the credit markets, a topic of particular interest given the credit cycle has likely crested with […]
When a political landscape crumbles
When the political status quo of such an important economic and diplomatic power comes to an end, global investors take heed. Of course, we are not talking about the United States. Or even China. Or even Britain for that matter. We are, of course, talking about Germany. Germany, alone, is a US$3.7 trillion per annum […]
WHAT’S UP IN THE STOCK MARKET?
With just a trading day left in October 2018, US stocks look set to record their worst result in a calendar month since February 2009 – when the global financial crisis was in full swing. This prompts a few important questions for investors: were stocks so expensive that a correction was due? Are stocks expensive […]
What Rhymes With GFC?
Minutes from the U.S. Federal Open Market Committee (FOMC) meetings (i.e. the Federal Reserve), can generally cure even the most stubborn insomnia. So as we parsed the most recent set of minutes (September 2018) and read through usual subjects such as how tight the labor market is, what interest rate trajectory might look like and […]
How Deep is Your Market?
The collective performance of the stocks of Facebook, Amazon, Apple, Netflix and Google (now Alphabet) has been sensational over the last few years. Combined with their sheer scale, the stocks of these companies have therefore accounted for the bulk of the US equity market’s gains in this time. So, it comes as no surprise that […]
