Global markets are beginning to move past the recent macro concerns as clarity improves. The US election cycle and US Fed interest rate cycle both remain in line with market expectations. ECB tapering optimism has Brexit and the Italian referendum as road blocks. Central banks are on a supporting bias... Show More
Central banks on easing bias, US Fed moving away from interest rate raising cycle and China stimulus will support commodities in the next 6-12 months. Despite the outperformance in the gold sector over the last 9mths, we continue to see more upside and maintain our buy call on the gold... Show More
The resource sector is likely to remain resilient and range bound till China removes stimulus or US Fed ramps up rate cycle. After the outperformance from the gold sector in the past 6-12 months, we expect energy sector to take the mantle as the top performer over the next 6-12mths.... Show More
Macro outlook: China stimulus and US Fed backflip to support commodities in the next 6-12 months as declining global growth drives more central banks to keep easing bias and deliver more stimulus. Growing debt and deficit problems have forced governments to deliver a low risk and low growth agenda to... Show More
Macro outlook: Despite short term stimulus reprieves, the medium to long term global market dynamics point to slowing global growth, weaker commodity prices and lower interest rates. The US Fed backflip has delivered another short term relief for commodity prices while longer term inflation pressures will force the USD higher.... Show More
Despite short term stimulus reprieves, the medium to long term dynamics point to slowing global growth, weaker commodity prices and lower interest rates. The conflicting monetary and fiscal policy settings will continue to weigh on any global growth recovery. The risk of the US Fed move, the negative outlook for... Show More
Global growth remains weak and volatile with major economies maintaining easing bias. China, Europe and Japan are expected to deliver more QE and stimulus while the US remains in low interest rate outlook for longer than expected. The short term bounce in commodities on the back of a weak USD... Show More
Energy Sector: Remains in the high risk category due to falling growth rates and historically low ROE at long term fair value multiples. We struggle to see clarity in the forecasts without supply side action from OPEC countries. Show More
