Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

Cross Asset Strategy

<ul>
<li>Even though the number of observations is limited, we believe looking at the broader picture surrounding previous Bitcoin halvings provides valuable insights.</li>
<li>For example, all previous halvings occurred during equity bull markets, modest GDP growth, mild inflation, and easy or easier Federal Reserve monetary policy. Similar circumstances are on the horizon.</li>
<li>Declining Bitcoin supply, because of the halving and the rise of long-term investors, combined with the approval of US spot Bitcoin ETFs will likely become this halving's catalyst.</li>
</ul>


Even though the number of observations is limited, we believe looking at the broader picture surrounding previous Bitcoin halvings provides valuable insights.
For example, all previous halvings occurred during equity bull markets, modest GDP growth, mild inflation, and easy or easier Federal Reserve monetary policy. Similar circumstances are on the horizon.
Declining Bitcoin supply, because of the halving and the rise of long-term investors, combined with the approval of US spot Bitcoin ETFs will likely become this halving's catalyst.


Taking the Bitcoin Halvings Out of Isolation

Chief Economist & Political Strategist, CrossASEAN Research

Prasenjit K. Basu

Chief Economist & Political Strategist

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Macroeconomics

<ul>
<li>The FOMC cut the Fed Funds rate by 25bp as expected, but its median projection showed just 50bp of rate cuts in 2025 (down from 100bp projected in Sep'24). </li>
<li>M2 has steadily accelerated since Mar'24, rising 3.3%YoY in Oct'24. Unsurprisingly, core PCE and core CPI inflation have moved higher from their Jul'24 trough to 3.32%YoY(Nov'24) and 2.8%YoY(Oct'24) respectively. </li>
<li>No rate cuts likely in Q1CY25, as fiscal stimulus (6.3% of GDP in Oct'23-Sep'24) keeps boosting RGDP growth and inflation. DOGE spending cuts &amp; declining Brent key to Jun'25 cut.</li>
</ul>


The FOMC cut the Fed Funds rate by 25bp as expected, but its median projection showed just 50bp of rate cuts in 2025 (down from 100bp projected in Sep'24). 
M2 has steadily accelerated since Mar'24, rising 3.3%YoY in Oct'24. Unsurprisingly, core PCE and core CPI inflation have moved higher from their Jul'24 trough to 3.32%YoY(Nov'24) and 2.8%YoY(Oct'24) respectively. 
No rate cuts likely in Q1CY25, as fiscal stimulus (6.3% of GDP in Oct'23-Sep'24) keeps boosting RGDP growth and inflation. DOGE spending cuts &amp; declining Brent key to Jun'25 cut.


US: FOMC's Hawkish Outlook Is Optimistic Without a Fiscal Complement

HK/China Equity Long-Short

Osbert Tang, CFA

Quantitative Analysis

<ul>
<li>The HSI has declined 3% MTD, but based on history, there is more downside risk. Over the last 10 years, the Index has only returned positively in two September.</li>
<li>October is also not good, and the Index declined an average of 1.9% in the month since 2019. However, November and December are normally the best-performing ones. </li>
<li>Prudent investors should stay conservative until October. By the end of next month, there are opportunities to increase position to take hold of the potential year-end rally. </li>
</ul>


The HSI has declined 3% MTD, but based on history, there is more downside risk. Over the last 10 years, the Index has only returned positively in two September.
October is also not good, and the Index declined an average of 1.9% in the month since 2019. However, November and December are normally the best-performing ones. 
Prudent investors should stay conservative until October. By the end of next month, there are opportunities to increase position to take hold of the potential year-end rally. 


China & HK Strategy: Sell in September and Go Away, Really?

Thematic (Sector/Industry)

<ul>
<li>Despite the rise and rise of the Magnificent 7, clues that this has made the S&amp;P 500 Index, and hence US stocks riskier, are limited.</li>
<li>However, looking at betas against other stock market indices and other asset classes reveals that risk associated with US stocks is trending slightly higher.</li>
<li>The key takeaway from this analysis, however, is that Treasuries - showing higher volatility and less diversification benefits - ARE quickly losing their appeal within a multi-asset portfolio.</li>
</ul>


Despite the rise and rise of the Magnificent 7, clues that this has made the S&amp;P 500 Index, and hence US stocks riskier, are limited.
However, looking at betas against other stock market indices and other asset classes reveals that risk associated with US stocks is trending slightly higher.
The key takeaway from this analysis, however, is that Treasuries - showing higher volatility and less diversification benefits - ARE quickly losing their appeal within a multi-asset portfolio.


Are the Magnificent 7 a Danger to Your Portfolio?

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>The SPX, Nasdaq 100, and DJI breaking out to new all-time highs following 3-week consolidations. Russell 2000 (IWM), S&amp;P 400 (IJH), Vanguard ExtendedMarket (VXF), countless other Sectors/industries breaking out also.</li>
<li>This is classic bull market behavior. Considering market dynamics remain healthy, this is all evidence that supports our ongoing bullish outlook.</li>
<li>Software, Data Storage buys: NTAP, NTNX, DBX, VRNS, and CVLT. Investment Banking &amp; Brokerage, Mid-Cap buys: JEF, SF, EVR, MC, and LAZ</li>
</ul>


The SPX, Nasdaq 100, and DJI breaking out to new all-time highs following 3-week consolidations. Russell 2000 (IWM), S&amp;P 400 (IJH), Vanguard ExtendedMarket (VXF), countless other Sectors/industries breaking out also.
This is classic bull market behavior. Considering market dynamics remain healthy, this is all evidence that supports our ongoing bullish outlook.
Software, Data Storage buys: NTAP, NTNX, DBX, VRNS, and CVLT. Investment Banking &amp; Brokerage, Mid-Cap buys: JEF, SF, EVR, MC, and LAZ


Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?

United States

The NASDAQ Composite Index is a broad-based capitalization-weighted index of stocks in all three NASDAQ tiers: Global Select, Global Market and Capital Market. The index was developed with a base level of 100 as of February 5, 1971.

NASDAQ Composite Index (CCMP INDEX)

Taking the Bitcoin Halvings Out of Isolation

Taking an in-depth look at previous Bitcoin halvings by taking them out of isolation by adding economic and market circumstances: Why Spot Bitcoin...

Jeroen Blokland

US: FOMC's Hawkish Outlook Is Optimistic Without a Fiscal Complement

We expect no rate cuts in Q1CY25, as M2 growth (3.3%YoY Oct'24) and fiscal stimulus (6.3% of GDP in year to Sep'24) are boosting growth. A Jun'25...

Prasenjit K. Basu

China & HK Strategy: Sell in September and Go Away, Really?

It pays to be cautious for HSI investors in Sep and Oct, with opportunities for a year-end rally in Nov and Dec. Despite the 3% drop in MTD, it is...

Osbert Tang, CFA

Are the Magnificent 7 a Danger to Your Portfolio?

The quick answer is that the Magnificent 7 are not a significant threat to the risk-return characteristics of your portfolio. However, the case for...

Jeroen Blokland

Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?

Breakouts Proliferate; Bullish Outlook Intact; Small- and Mid-Caps to Outperform? $SPX $QQQ $DJI breakout to all-time highs, $IWM $IJH $VXF,...

Vermilion Research

Taking the Bitcoin Halvings Out of Isolation

Taking an in-depth look at previous Bitcoin halvings by taking them out of isolation by adding economic and market circumstances: Why Spot Bitcoin...

Jeroen Blokland

US: FOMC's Hawkish Outlook Is Optimistic Without a Fiscal Complement

​We expect no rate cuts in Q1CY25, as M2 growth (3.3%YoY Oct'24) and fiscal stimulus (6.3% of GDP in year to Sep'24) are boosting growth. A Jun'25...

Prasenjit K. Basu

China & HK Strategy: Sell in September and Go Away, Really?

​It pays to be cautious for HSI investors in Sep and Oct, with opportunities for a year-end rally in Nov and Dec. Despite the 3% drop in MTD, it is...

Osbert Tang, CFA

Are the Magnificent 7 a Danger to Your Portfolio?

The quick answer is that the Magnificent 7 are not a significant threat to the risk-return characteristics of your portfolio. However, the case for...

Jeroen Blokland

Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?

Breakouts Proliferate; Bullish Outlook Intact; Small- and Mid-Caps to Outperform? $SPX $QQQ $DJI breakout to all-time highs, $IWM $IJH $VXF,...

Vermilion Research

We expect no rate cuts in Q1CY25, as M2 growth (3.3%YoY Oct'24) and fiscal stimulus (6.3% of GDP in year to Sep'24) are boosting growth. A Jun'25...

It pays to be cautious for HSI investors in Sep and Oct, with opportunities for a year-end rally in Nov and Dec. Despite the 3% drop in MTD, it is...