Psigma's Becket: Why Fed inaction is a victory for EMs - and star player China

clock
Psigma's Becket: Why Fed inaction is a victory for EMs - and star player China

For much of 2015, and the early part of 2016, I only had to check the direction of the oil price and the Shanghai Composite to work out how good - or bad - the day ahead would be.

Today, that obsession has been temporarily shelved and it is the dollar index that has taken centre stage in investors' restless nights. Since what appears to have been a market inflection point in mid-February, it has been a simple equation: dollar weakness equals risk-on, value up, growth down, credit spreads tightening, commodities recovering, and most investors hating it. This trend had been firmly in place for two-and-a-half months until the last ten days, when a correction has taken place. Central bank 'puppets' Before attempting to outline the next act of this dramatic yea...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Markets are generally positive in months with rate rises
US

Rate hikes could have 'benign' impact on equities

Follows Fed 75bps hike

clock 20 June 2022 • 1 min read
Sectors in the US stock market that have been leaders over the last decade have come to a sudden stop in terms of their outperformance of the broader market since the start of 2022.

Deep Dive: A paradigm shift for US equities

'Valuations matter'

clock 15 June 2022 • 5 min read
Trustpilot