Archives for March 2023

Equities managed to finish generally higher for the week although it was a volatile period with more banking trauma and investors weighing central banks’ response and inflation concerns.

Full report
https://realmim.com/stock-markets-finished-higher-last-week-despite-rate-hikes/

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.’

Bank sector woes continued last week increasing concerns about the stability of the US economy. Many investors now think the Fed may be forced to pause its current cycle of rate increases in response. We’ll find out on Wednesday.

Following the collapse of Silicon Valley Bank in the US, which prompted a sell-off in risk-assets, stocks rebounded after US CPI data on Tuesday showed the annual inflation Rate fell to 6% in February. This provided some relief although core inflation was reported higher than forecasted.

News came on Wednesday that Credit Suisse was also having problems and yesterday (Sunday) UBS was persuaded by regulators to buy its rival in an emergency deal with the hope that confidence could be restored. Today (Monday) markets are a bit calmer – equities are holding steady, the US 10-yr Treasury Yield is slightly higher and the Dollar down a little.

Full report
https://realmim.com/markets-calmer-today-after-bank-sector-turmoil/

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.’

Stock markets have weakened after last week’s failure of Silicon Valley Bank and Fed Chairman Jerome Powell’s testimony before Congress. The US Dollar declined. The yield on the 10-year US Treasury note has fallen back from above 4% last week to 3.5% today (Monday).

On Tuesday Powell said that the task of bringing inflation back to the long-term target of 2% might have to include raising rates higher than previously anticipated and at a faster pace, adding that the process “is likely to be bumpy”.

Full report
https://realmim.com/stocks-lower-today-after-hsbc-buys-uk-arm-of-collapsed-silicon-valley-bank/

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.’

Stock market analysis – w/e 3rd March 2023 from Realm Investment Management.

Fed Chairman Jerome Powell will give testimony before the US congress this week and is expected to explain that interest rates will probably need to go higher than recently expected. With persistent low unemployment and inflation remaining high, markets already see the Fed lifting rates above levels anticipated just a couple of months ago and there is no longer a general expectation that the Fed will pivot to easing rates later this year.

Full report
https://realmim.com/back-and-forth-on-rate-expectations-continues/

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.’