Weekly Thoughts

Last week’s big sell-off began in Chinese stocks followed a disappointing leadership reshuffle under President Xi Jinping who seemed to have left off most pro-market reform politburo members from the core leadership group…

With Japan’s inflation rate approaching its 40-year high, more market participants are coming round to our view that BOJ’s ongoing policy errors have set the stage for a major showdown between the…

With US inflation gauge still running hotter than any remaining bulls have been hoping for and core inflation at elevated levels, an end to the interest rate tightening cycle still looks way…

Capital markets are starting to show signs of dislocation while outlook for stock markets remain grim as investors grapple with growing likelihood of earnings disappointments and rising interest rates in the face…

The events in capital markets played out as we had expected and explained in our last week’s publication. Number of central banks followed Fed’s move to aggressively raise interest rates to fight…

Optimism about the US central bank ending its monetary policy tightening and reversing course by early next year have all but vanished. With core inflation data coming hot as we have been…

The yen’s latest plunge is reportedly making BOJ governor’s last few months at the helm very difficult. As we have long argued, we think BOJ simply does not have enough time to…

This week we look more inwards and briefly touch upon our core themes and our Japan stock market strategy. With markets coming to terms with the reality that inflationary forces are unlikely…

As we have been outlining in our publications through the last two months, hopes for easier monetary policy next term seemed misplaced given the broadening of inflation through the service sector, general…

July’s US stock market rally has spilt over to August as investors have chosen to ignore economic policy makers’ tougher rhetoric on inflation in speculating that slowing economy will force the US…