Archives for February 2023

Market Review from Realm Investment Management – week ending 24th February 2023

Minutes from the most recent meeting of the Federal Reserve released early last week showed that “almost all” policymakers were in favour of slowing down the pace of rate increases and thought the 0.25% increase at the meeting was the way to go (although “a few” officials could have supported a 0.5% hike). However, on Friday the Fed’s preferred measure of inflation, the Core PCE price index (excludes food and energy) came in above expectations causing stocks to sell-off at the end of the week. The annual rate of inflation came in at 4.7%, reigniting expectations that the Fed will need to keep rates higher for longer. The yield on the US 10yr Treasury Note ended the week close to 4%, its highest level since November.

Full report:
https://realmim.com/good-news-is-bad-news-remains-a-problem/

Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.

This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’

Market Review from Realm Investment Management – week ending 17th February 2023

Concerns rose last week that the US Federal Reserve will stick with large rate hikes. US CPI data for January came in above forecast at 6.4%, US producer prices in January reached a 7-month high and US initial jobless claims came in lower than expected. The yield on the 10-year US Treasury Note rose above 3.9% on Friday, its highest level since November.

Subsequent comments from Fed officials re-inforced the idea that another 0.5% rate hike in March might be back on the table – Loretta Mester, Cleveland Fed President, said there was “compelling economic case” for it. Markets are now pricing in two more 0.25% interest rate hikes from the Fed this year at a minimum.

Full report:
All things considered – stocks did well last week – Realm Investment Management (realmim.com)

Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.

This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’

Market Review from Realm Investment Management – week ending 10th February 2023

After rallying from their lows three months ago, Bonds turned lower last week following the stronger-than-expected US jobs report released 3rd February. The US 10yr Treasury yield was up strongly, finishing on Friday above 3.7%. Key US inflation data is being released tomorrow (Tuesday).

Full report
https://realmim.com/key-question-is-strong-us-jobs-data-good-or-bad-for-the-market/

Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.

This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’