A sharp two-day rally in the Chinese yuan has risk markets captivated, but the Chinese industrial economy is the real question. With correlations between industrial metals and risk markets still at multi-year highs, search trends in Australia paint a bullish picture.
Today's topics include the Fed's view on neutral rates, 2019 outlook, cash yields climb, Qatar leaves OPEC, the yuan jumps, dow vigilantes are back, leveraged loans and Trump vs Yellen.
Do not become overly wrapped up in short-term reactions produced by trade policy headlines. Slowing global economic data changes and heightened monetary policy uncertainty continue to rule the roost.
Scott Galloway recently offered his thoughts that China's core competency may be at risk due to the trade war.
The government of Alberta blinked as the collapse in oil prices continued to weigh on the local economy. Measures to cut production and boost takeaway capacity in the region took prices off their lows. The Bank of Canada will be pressed to maintain its hawkish stance.
Fund flows through October 2018.
A look at stock and bond total returns through November 2018.
Today's topics include Clarida's comments on financial stability, murkier Fed guidance, U.S. vs. world stocks, volatility not helping hedge funds, the worst credit returns since 2008, how oil prices affect the U.S. economy, dollar debt sales, Qatar quits OPEC and the leveraged loan market.
U.S. core inflation is rolling over and Fed officials are no longer in agreement, but we do not yet see a dramatic global slowdown persisting.
The healthcare rally just keeps on ticking. Investors continue to add exposure and industries like healthcare facilities are now at new highs for 2018. The balance between potential risk-on conditions and concerns over rising global rates will be critical going forward.