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.

Macroeconomics

<ul>
<li>Powell sounded much more dovish than during the previous FOMC meeting and had just one message: the Federal Reserve is now fully data-dependent regarding future monetary policy.</li>
<li>Powell believes the Fed is done and highlighted the balance between doing too much or too little. Before, the Fed had shown a clear willingness to risk doing too much.</li>
<li>Since the market was driven by central bank 'hopium,' Powell has taken a key catalyst from markets to move higher.</li>
</ul>


Powell sounded much more dovish than during the previous FOMC meeting and had just one message: the Federal Reserve is now fully data-dependent regarding future monetary policy.
Powell believes the Fed is done and highlighted the balance between doing too much or too little. Before, the Fed had shown a clear willingness to risk doing too much.
Since the market was driven by central bank 'hopium,' Powell has taken a key catalyst from markets to move higher.


Powell Is Done, but Whether the Fed Is Too Depends on the Data

Head of Research and Global Chief Strategist, Steno Research

Andreas Steno

Head of Research and Global Chief Strategist

Macro and Geopolitical Research House

Steno Research

Steno Research is a new macro and geopolitical research house. We are based out of Copenhagen, Denmark, but have an international team and a strong network of sources and partners around the world. The team is lead by Andreas Steno, previous global head of strategy at Nordea Bank, and Mikkel Rosenvold, former chief consultant in the Danish Ministry of Finance.

<ul>
<li>A Fed pause historically means that the recession clock starts ticking and rings in the recession when the Fed starts cutting.</li>
<li>The outlook for cuts?</li>
<li>That’s properly worth a watch series on its own but with long-end rates below 4%, equity markets making YTD highs, strong corporate profitability and a labor market that still shows strength, we venture to say that those cuts are likely not around the corner.</li>
</ul>


A Fed pause historically means that the recession clock starts ticking and rings in the recession when the Fed starts cutting.
The outlook for cuts?
That’s properly worth a watch series on its own but with long-end rates below 4%, equity markets making YTD highs, strong corporate profitability and a labor market that still shows strength, we venture to say that those cuts are likely not around the corner.


Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<div><div><div><ul style="list-style-type: disc;"><li><p>Global equities again inched higher this week with the S&amp;P 500 +0.65% and the MSCI World Index +0.60%.</p></li><li><p>The S&amp;P 500 is now within 6% of an all-time high as investors become increasingly confident that inflation has cooled while corporate earnings remain strong.</p></li><li><p>The Russell 2000 climbed 1.53% last week but remains 18% below its 2021 peak. </p></li></ul></div></div></div>

Global equities again inched higher this week with the S&amp;P 500 +0.65% and the MSCI World Index +0.60%.The S&amp;P 500 is now within 6% of an all-time high as investors become increasingly confident that inflation has cooled while corporate earnings remain strong.The Russell 2000 climbed 1.53% last week but remains 18% below its 2021 peak. 

The Highlights - Cannabis News for the Week Ending July 21, 2023

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Cross Asset Strategy

<ul>
<li>Easy comparisons contributed to lower US inflation in 2023 H1, but the backdrop in H2 is less favourable, thereby making the Fed wary of premature dovish policy pivots.</li>
<li>Economic soft-landings have never been good for corporate profits, thereby helping to explain why analysts have set such a low bar for the 2023 Q2 reporting season. </li>
<li>Glaring inconsistencies are embedded in the 2024 outlooks for corporate profits and Fed policy, notably resource utilisation in the US economy remains too elevated to quickly cull inflation pressures.</li>
</ul>


Easy comparisons contributed to lower US inflation in 2023 H1, but the backdrop in H2 is less favourable, thereby making the Fed wary of premature dovish policy pivots.
Economic soft-landings have never been good for corporate profits, thereby helping to explain why analysts have set such a low bar for the 2023 Q2 reporting season. 
Glaring inconsistencies are embedded in the 2024 outlooks for corporate profits and Fed policy, notably resource utilisation in the US economy remains too elevated to quickly cull inflation pressures.


US Equities Outlook: Time for a Reality Check

<ul>
<li>The US Truck Tonnage Index (TTI) 'explains' 95% of the level of US GDP. After a substantial increase in June, the TTI does not point to an immediate US recession.</li>
<li>Given its robust relationship with US stock markets, we derive 'fair value' estimates for the Dow Jones Transportation and S&amp;P 500 Index, revealing ample downside for both indices.</li>
<li>In addition, a simple TTI-based investment strategy using these fair value estimates results in a superior Sharpe ratio, explained by higher returns and lower risk.</li>
</ul>


The US Truck Tonnage Index (TTI) 'explains' 95% of the level of US GDP. After a substantial increase in June, the TTI does not point to an immediate US recession.
Given its robust relationship with US stock markets, we derive 'fair value' estimates for the Dow Jones Transportation and S&amp;P 500 Index, revealing ample downside for both indices.
In addition, a simple TTI-based investment strategy using these fair value estimates results in a superior Sharpe ratio, explained by higher returns and lower risk.


A Key US Macro Indicator Rose the Most Since Covid but Still Points to 20% Downside in Equities

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)

Powell Is Done, but Whether the Fed Is Too Depends on the Data

A surprisingly dovish-sounding Powell hinted that the Federal Reserve is done hiking, depriving equity markets of Fed hopium!

Jeroen Blokland

Pause Watch: 25 bps and then a pause!?

A Fed pause historically means that the recession clock starts ticking and rings in the recession when the Fed starts cutting. The outlook for...

Steno Research

The Highlights - Cannabis News for the Week Ending July 21, 2023

The S&P 500 is now within 6% of an all-time high as investors become increasingly confident that inflation has cooled while corporate earnings...

Water Tower Research

US Equities Outlook: Time for a Reality Check

US equity investors have embraced benign outlooks for inflation, Fed policy and a recovery in corporate profits. Resource utilisation has not,...

DeSaque Macro Research

A Key US Macro Indicator Rose the Most Since Covid but Still Points to 20% Downside in Equities

Despite a substantial gain in the US Truck Tonnage Index in June, freight activity reveals significant downside in equities.

Jeroen Blokland