Archives for December 2023

Focus for investors last week was the US Fed meeting and both stocks and bonds rallied after the event. The interest rate was kept on hold but there were indications from the central bank that it would likely adopt a more accommodative stance next year. Comments from Fed Chair Powell that “you’d want to be reducing restriction on the economy well before 2% so you don’t overshoot” were of particular interest. Along with lower yields and cooling inflation (data last week showed that US Inflation has slowed to 3.1%) – the US economic soft-landing narrative has been given a boost.

Full report:
https://realmim.com/a-tale-of-two-central-banks/

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.’

In this coming week, investors will be closely watching Tuesday’s US CPI data along with the meeting of the US Federal Reserve which concludes on Wednesday. The Fed’s final policy decision for the year
will almost certainly be to keep interest rates on hold but clues may be given by policy makers regarding if/when cuts will come in 2024. With evidence of cooling in the US jobs market and inflation falling faster than the Fed expected, optimism is increasing that the initial cut will come in the first half of the new year.

Full report
https://realmim.com/focus-this-week-on-us-cpi-data-and-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.’

Last week was a very good one for US stocks, European stocks, bonds and gold (gold has reached a new all-time high today). All responding to the expectation that rate cuts may be coming next year, possibly as early as March. The Dollar Index was lower and the yield on the 10-yr US Treasury fell to its lowest level since the start of September.

Full report
https://realmim.com/bulls-growing-in-numbers-fast/

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.’