Poole on Point: Alpha seekers head to China

Poole on Point: Alpha seekers head to China

(ATF) On August 18, the S&P 500 extended its post-Covid-19 rally and reached record high levels. The collapse caused by the epidemic in March almost seemed a distant, unpleasant memory. Reaching a record high was once remarkable. New US equity market price records were achieved roughly every decade since the ...

Continue reading

The global economy has held up well, but now for the hard part

The global economy has held up well, but now for the hard part

(ATF) The global economy has fared surprisingly well in recent months, but a full V-shaped recovery from the coronavirus pandemic is far from assured. While stock markets are surfing a monster wave of central bank liquidity, underlying economic fundamentals remain vulnerable to the virulence of the virus and setbacks in ...

Continue reading

Strongman regimes display weakness in Covid response, say analysts

Strongman regimes display weakness in Covid response, say analysts

Posturing, repression and a distaste for facts: the world's strongman regimes have dealt with the Covid pandemic in much the same way they deal with everything else, analysts say. But the sometimes blatant disregard for the wellbeing of populations, coupled with sheer incompetence, has undermined whatever trust citizens have in ...

Continue reading

Fed refills punchbowl with inflation move

Fed refills punchbowl with inflation move

(ATF) US Federal Reserve Chair Jay Powell delivered average inflation targeting at the Fed's virtual retreat in Jackson Hole. The Fed had prepared markets for the change, but its timing was a bit earlier than expected. For China and other Emerging Markets, the Fed's monetary policy framework's adjustment is both ...

Continue reading

As Fed shifts inflation goal, gold and dollar will face headwinds

As Fed shifts inflation goal, gold and dollar will face headwinds

Last week, the US Federal Reserve shifted its inflation goalposts. Fed Chair Jerome Powell told investors the Fed would aim for an inflation rate of 2% on average. It seems a small change. After all, the Fed was already targeting a fixed 2% inflation rate. But moving to an average ...

Continue reading

China bonds go global, gradually but inevitably

China bonds go global, gradually but inevitably

(ATF) Previously overlooked by global investors, China’s nearly US$14-trillion bond market has garnered growing attention as an increasingly attractive asset class. As China continues to open up and bond index inclusions prompt more passive money to flow in, this ongoing influx of capital will create a form of structural support ...

Continue reading

China circulates new strategy in economic duel with US

China circulates new strategy in economic duel with US

China has waded into the debate over whether the retreat from globalisation is a passing nuisance or is here to stay. Its verdict? The trend is for real, but China aims to turn the reversal to its advantage with a new economic strategy. If it succeeds, the consequences for the ...

Continue reading