Global equities tumbled nearly 8% last week following the announcement of US tariffs on April 2, with the rout continuing into Monday, April 7. Key Asian markets have declined 3%–13% on Monday, partly reflecting the delayed reaction from markets that were closed on Friday, while US and European markets experienced wild swings after opening sharply […]
April 2025
Yesterday (April 2), US President Donald Trump announced sweeping new tariffs targeting nearly all US trading partners. The policy includes a 10% baseline tariff on all imported goods and country-specific “reciprocal” tariffs of up to 50% that target nations with perceived unfair trade barriers against US products. Key trading partners such as the EU, Japan, […]
April 2025
Yes, in response to weak growth and a changing defence landscape, taking off the fiscal straitjacket should catalyse a more growth-supportive economic environment within Europe. There will be a direct growth impact as increased government investment is disbursed, some crowding in of private-sector investment, and the potential for further positive growth benefits from subsequent institutional […]
March 2025
No, investors should hold equity allocations in line with their policy portfolio weights. Trade policy uncertainty has forced many investors to reassess the trajectory of global economic growth, sending ripples through markets, and prompting US equities to enter a “correction” on March 13. Still, there are strong arguments for holding equity allocations steady. For instance, […]
March 2025
No, we do not think so. India’s economic growth is set to continue moderating, which may lead to further downgrades to stretched earnings growth expectations. Current equity valuations remain elevated, which poses additional downside risk. Still, the recent correction has taken some froth out of the market, and India’s longer-term structural tailwinds remain intact. As […]
March 2025
No, we don’t think so. There are parallels between today’s AI-related developments and the internet revolution of the late 1990s and early 2000s, as both eras involve profound technological change. Market concentration, increased capital investments, and valuation risks are among those parallels. However, the quality of companies today is higher and speculative excesses are less […]
February 2025
Equity long/short (ELS) is a prominent strategy within the diverse hedge fund landscape, accounting for a significant portion—approximately $1.3 trillion, or 29%—of total hedge fund assets as of fourth quarter 2024, according to Hedge Fund Research, Inc. (HFRI). Put simply, ELS managers take long positions in securities they perceive as undervalued, and short positions in […]
February 2025
No. All three factors have weighed on euro area equity and currency markets to some extent in recent months. That has ranged from directly, by crimping economic activity; potentially dragging down future growth, by weighing on domestic economic confidence; or simply by denting the sentiment of fearful investors towards the region. However, a material degree […]
February 2025