Capital Daily The stock market rotation may have further to run Even if, as we suspect, the outperformance of the energy and materials sectors soon comes to an end, we expect the broader rotation in equity markets to continue over the next few years. 24th May 2021 · 6 mins read
Capital Daily PMIs, bond yields & the euro The latest flash PMIs reinforce our view that the economy will continue to grow at a faster pace in the US than in the euro-zone in the next few years. This feeds into our forecast that long-dated... 21st May 2021 · 7 mins read
Capital Daily We expect recent strength in the South African rand to reverse Despite its recent appreciation against the US dollar, we expect the South African rand – like most emerging market (EM) currencies – to end this year weaker against the greenback. 20th May 2021 · 6 mins read
Capital Daily US corporate bonds versus equities The relative valuation of stock and corporate bond markets continues to make us doubt that equities in general are in a bubble. It remains very different to the situation before collapses in the US... 19th May 2021 · 6 mins read
Capital Daily We expect gold to lose some of its lustre as real yields rebound While the recent rebound in the price of gold may owe something to greater demand for safe havens in response to faltering equity prices, as well as to cryptocurrencies coming under pressure, most of... 18th May 2021 · 6 mins read
Capital Daily Assessing the market implications of slower growth in China We think slowing economic growth in China – highlighted again by today’s economic data – has several key implications for the country’s financial markets. 17th May 2021 · 6 mins read
Capital Daily We think the US dollar will strengthen again before long We don’t expect the recent weakness in the US dollar to persist. On the contrary, we think that it will strengthen against most major currencies as economic growth in the US outpaces that in the rest... 12th May 2021 · 6 mins read
Capital Daily What to make of the sell-off in the NASDAQ The tech-heavy NASDAQ 100 was down again today at the time of writing, bringing its slump since a record intraday high on 29 th April to around 6%. Five of the largest “big tech” firms (Amazon, Apple... 11th May 2021 · 6 mins read
Capital Daily Inflation compensation, bond yields and the Fed Although long-term nominal US Treasury yields have remained broadly stable over the past month or so in the face of rising inflation compensation, we don’t expect this to last. 10th May 2021 · 6 mins read
Capital Daily We think that the 10-year Gilt yield will rise further Despite the Bank of England becoming a bit more hawkish, we think that rates will remain on hold for a long time. As a result, inflation will rise above the 2% target for a prolonged period, which... 6th May 2021 · 6 mins read
Capital Daily Big tech and bond yields While Tuesday’s near-2% drop in the NASDAQ 100 has been pinned on the rise in US government bond yields that followed Treasury Secretary Yellen’s comments about the potential need for tighter Fed... 5th May 2021 · 6 mins read
Capital Daily Underperformance of E-Z vs US equities won’t last in our view While we expect the economic recovery in the euro-zone to be slower than that in the US, we still think that euro-zone equities will outperform their US peers in the remainder of the year. 4th May 2021 · 5 mins read
Capital Daily We expect the rally in stock markets to run out of steam We doubt that latest rally in stock markets will continue at its current pace, and forecast smaller gains over the next few years. 30th April 2021 · 7 mins read
Capital Daily Earnings optimism could constrain the upside for the S&P 500 It is tempting to think there is still significant upside for the S&P 500, given the recent slew of upbeat earnings reports for Q1. Nonetheless, a lot of good news about the outlook for profits is now... 28th April 2021 · 6 mins read
Capital Daily Yields may resume their climb, despite central bank guidance We do not think that dovish guidance from developed market (DM) central banks about the near-term outlook for policy rates is a barrier to longer-term bond yields rising in markets where the economic... 27th April 2021 · 5 mins read
Capital Daily Renewed rise in Treasury yields may weigh on EM currencies We suspect emerging market (EM) currencies will generally fare poorly this year as long-dated Treasury yields resume their rise. 26th April 2021 · 5 mins read
