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>The recent rise in interest rates is leading to a further shift in cross-asset valuation.</li>
<li>The volatility-adjusted yields of equity-related asset classes have become even less attractive than those of bond-related asset classes.</li>
<li>The case for bond investments becomes even stronger when considering that the correlation between equity and bond returns is remarkably high, diminishing diversification benefits.</li>
</ul>


The recent rise in interest rates is leading to a further shift in cross-asset valuation.
The volatility-adjusted yields of equity-related asset classes have become even less attractive than those of bond-related asset classes.
The case for bond investments becomes even stronger when considering that the correlation between equity and bond returns is remarkably high, diminishing diversification benefits.


Risk-Adjusted Yields and High Correlation Make Equities Unattractive!

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>Support levels discussed in our 8/8/23 Compass broke, leading to a change in character (from buy the dup to sell the rip) and a deeper pullback.</li>
<li>Supports we were watching included the 50-day MA and 4460-4475 on the S&amp;P 500, $371.50 on $QQQ, and $190-193 on the $IWM; these are now resistance moving forward</li>
<li>Longer-Term support on the S&amp;P 500 is at 4300-4325 (nearly hit on Friday) and 4200, and we will remain constructive as long as these supports hold.</li>
</ul>


Support levels discussed in our 8/8/23 Compass broke, leading to a change in character (from buy the dup to sell the rip) and a deeper pullback.
Supports we were watching included the 50-day MA and 4460-4475 on the S&amp;P 500, $371.50 on $QQQ, and $190-193 on the $IWM; these are now resistance moving forward
Longer-Term support on the S&amp;P 500 is at 4300-4325 (nearly hit on Friday) and 4200, and we will remain constructive as long as these supports hold.


Pause Continues But Oversold Bounce Likely; Buys in Energy, Construction/Engineering, Enrgy Shippers

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>'Bidenomics' investment subsidies aided the 7.7%QoQsaar growth in business investment in Q2CY23, delaying the onset of recession. Policy rate to stay near 5.5% until Q2CY24, thereby restraining growth until then.</li>
<li>ECB and BoE face less pressure to raise rates amid easing headline inflation, so yield differentials will strengthen USD; the latter will be a drag on net exports in H2CY23.</li>
<li>The spending restraints agreed in May'23 kick in from Oct'23, and will be a drag on aggregate demand from Q4CY23, the quarter a mild recession is likely to begin. </li>
</ul>


'Bidenomics' investment subsidies aided the 7.7%QoQsaar growth in business investment in Q2CY23, delaying the onset of recession. Policy rate to stay near 5.5% until Q2CY24, thereby restraining growth until then.
ECB and BoE face less pressure to raise rates amid easing headline inflation, so yield differentials will strengthen USD; the latter will be a drag on net exports in H2CY23.
The spending restraints agreed in May'23 kick in from Oct'23, and will be a drag on aggregate demand from Q4CY23, the quarter a mild recession is likely to begin. 


'Bidenomics' Delays Recession, but USD Rebound & Fiscal Reins Are Tipping Points

<ul>
<li>China could become a ‘Credit Event.’ Despite a slew of new stimulus measures by the Chinese government, they are not comprehensive enough to rule out one or more credit events.</li>
<li>200-Day moving averages hit. Several equity market indices have dipped below their 200-day moving average, including the MSCI Emerging Markets Index. </li>
<li>Response to the latest US inflation figure. In contrast to previous favorable inflation figures, American stocks closed lower on the day following the publication.</li>
</ul>


China could become a ‘Credit Event.’ Despite a slew of new stimulus measures by the Chinese government, they are not comprehensive enough to rule out one or more credit events.
200-Day moving averages hit. Several equity market indices have dipped below their 200-day moving average, including the MSCI Emerging Markets Index. 
Response to the latest US inflation figure. In contrast to previous favorable inflation figures, American stocks closed lower on the day following the publication.


Back with a Bang! – Macro and Sentiment Call for an Underweight in Equities

Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

Crypto

<ul><li>This week, news broke that the oldest crypto market maker, GSR, has been scaling back operations - particularly in the U.S. - while a number of top executives have left the company.</li><li>This is yet another hit to U.S. and global liquidity and volumes; in May, Jump Crypto and Jane Street revealed they were reducing crypto operations.</li><li>This week, we’ll take a look at the state of the crypto market, including volatility, liquidity, and volumes, and then examine some budding narratives and tokens.</li></ul>

This week, news broke that the oldest crypto market maker, GSR, has been scaling back operations - particularly in the U.S. - while a number of top executives have left the company.This is yet another hit to U.S. and global liquidity and volumes; in May, Jump Crypto and Jane Street revealed they were reducing crypto operations.This week, we’ll take a look at the state of the crypto market, including volatility, liquidity, and volumes, and then examine some budding narratives and tokens.

United States

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

S&P 500 INDEX (SPX INDEX)

Risk-Adjusted Yields and High Correlation Make Equities Unattractive!

Volatility-adjusted yields are much lower for equity-like asset classes than for bond-like asset classes, which does not bode well when correlation...

Jeroen Blokland

Pause Continues But Oversold Bounce Likely; Buys in Energy, Construction/Engineering, Enrgy Shippers

$SPX broke support discussed in our Aug 8 Compass (50-day MA/4460), leading to change in character (now sell the rips) and deeper pullback. Expect...

Vermilion Research

'Bidenomics' Delays Recession, but USD Rebound & Fiscal Reins Are Tipping Points

US averts recession before Q4CY23, as Bidenomics is buoying investment. Strong USD helped in H1 but will be a drag in H2CY23. Fiscal spending reins...

Prasenjit K. Basu

Back with a Bang! – Macro and Sentiment Call for an Underweight in Equities

We lower the weight of Emerging and Developed Market Equities on recent developments in China, indices dropping below their 200-day moving...

Jeroen Blokland

Where Has the Volatility Gone?

This week, we’ll take a look at the state of the crypto market, including volatility, liquidity, and volumes, and then examine some budding...

Kaiko