The return of inflation has taken a lot of people by surprise, although it should not have done. Worryingly, even central banks have acted quite surprised by the abrupt rise in prices, when they should have expected it.
Continue readingTag Archives: Russia
Buy in May and go away?
It looks like the old saying “Sell in May and go away” has just been turned on its head. After cratering for seven weeks, the S&P 500 index ended last week up 6.6%
Continue readingWhy high natural gas prices could benefit democracy
As Russia’s war on Ukraine has disrupted global energy supplies, the focus on renewable and sustainable energy is becoming sharper than ever.
Continue readingRussian war on Ukraine hurts all emerging markets
Besides the immense human tragedy that it has caused, Russia’s brutal attack on Ukraine has also thrown emerging markets back at least a decade in terms of attractivity for investors. It will be hard, if not impossible, for the asset class to bounce back.
Continue readingArgentina shows the bad side of quantitative easing
This past week, there has been a frenzy of selling of emerging markets assets. The outflows from both stocks and debt in emerging markets reached their highest level since December 2016.
This amounted to $3.7 billion withdrawn from emerging market equities and bonds, according to data analysed by Bank of America Merrill Lynch. These outflows have helped push our old friend, the Bull/Bear indicator developed by BofA Merrill Lynch, to 4.8 — its lowest level since January 2017.
Emerging Europe consumption at highest since 2008
Emerging markets have been in the doldrums recently but one region, which had been hard hit by the eurozone crisis, seems to be getting ready for a brisk upturn now.
Residential property bubble spreads: BIS data
The residential property bubble continues in countries like the UK and Sweden, but it seems to have spread to some other countries as well, according to data from the Bank for International Settlements.
Emerging markets currencies outlook for Q2
Emerging markets currencies will be one of the most affected asset classes when the Federal Reserve starts to hike interest rates, but actually some of them stand to benefit.
Bullish investors return to emerging markets
Emerging market assets, particularly bonds but also equities, are staging a comeback as investors gradually return to risky assets.
A survey of investor sentiment carried out by Societe Generale in February among 41 hedge funds and 41 real money investors such as pension funds, showed the bullish bias towards emerging markets strengthening for the near term.
The curse of cheaper oil hits some emerging markets
The Goldilocks scenario about the lower price of oil fuelling an economic boom has a few big holes, mainly when it comes to emerging markets.