Weekly Thoughts

US vaccinations continue to surge while Japan struggles ahead of OlympicsAlthough the most recent resurgence in Covid infections around many parts of the world, including Japan have led to some renewed concerns…

Equity markets looking poised for more gains this quarterWith a short-lived quarter-end profit taking of the previous week out of the way, S&P cleared its symbolic all time high hurdle of 4,000…

Last week’s markets provided a brief glimpse into ‘what if we are wrong?’ scenarioLast week we saw what looked to be a brief quarter-end related profit taking in cyclicals and re-opening plays…

Generational monetary regime change while Japan stocks shineAs we have explained, March could prove a pivotal month for 2021 as rising rates have strongly signalled what could be a generational change in…

Growth stocks derating should continue but markets look well supported As we have previously noted, we think this trend in growth stocks derating should continue in global stock markets, at least until we…

Tech derating should continue, pushing down PEs to low teensWith the Fed looking fairly comfortable for now to allow market forces to dictate long term rates, we don’t think this rate normalisation…

Higher rates come with high fund inflows into equities, even Japan’s   Although spiking long-term rates in the US have jolted markets, from our perspective it has mainly impacted sector allocations rather than…

Japan back in vogue as Nikkei breaches above 30,000This week, we will focus mainly on our own market of Japan equities as Nikkei’s breach above 30,000 level for the first time since…

Animal spirits in full flow but AUM in money market funds have stopped fallingUS stocks continued to rally as market’s animal spirits were in full flow and as retail investors ploughed more…

Reddit swarm quelled as investors focus back on vaccination programsAfter last week’s fireworks sparked by what seemed to be an uprising by US retail investors, the stock market quickly found its footing…