Archives for September 2023

…and today (Monday) the benchmark yield has (again) reached its highest level since 2007.

The Fed kept rates on hold last week but sent a clear indication that in order to bring inflation down to the 2% target rate there could be another hike this year. Stocks declined and the US Dollar rallied.

Full report
https://realmim.com/us-10yr-treasury-yield-hits-16-year-high-after-fed-meeting/

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.’

European equities were higher last week. The UK’s FTSE 100 put in a particularly good performance – up more than 3%. Asia was mixed, and the US, flat to lower.

The European Central Bank (ECB) raised interest rates again last week. This hike of 0.25% lifted rates to 4.5%, the highest since 1999. There was an indication that an end to the cycle could be in sight though; the ECB said “interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target”. European equities rallied strongly following the statement.

Full report:
https://realmim.com/central-bank-decisions-this-week-from-fed-boe-boj/

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.’

Stocks in the U.S. and Europe were lower last week as strong US economic data and rising oil prices weighed on the outlook for inflation and kept pressure on central banks.

Full report:
https://realmim.com/good-news-is-still-bad-news-for-markets/

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.’

August was a down month for stock-markets but two emerging themes helped equities cap losses. One is the belief that AI will help drive future growth and the other is the increasing optimism over a soft-landing for the US economy.

There have been indications that the US labour market has been weakening recently (remember that the markets are in a bad-news-is-good-news mode). Data last week showed that Job Openings fell to their lowest level since March 2001 and Friday’s nonfarm payrolls report…

Full report:
https://realmim.com/stocks-down-in-august-but-soft-landing-hopes-grow/

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.’