This week we review how US real negative interest rates have pressured the USD while giving strength to the Euro and some emerging market currencies and sovereign debt. We look at commodities, FAANG stocks, china and even Vietnam.
AVC Advisory’s Alan McGregor and Michael Barry interview Andrey Movchan, an asset manager and non-resident scholar of the Carnegie Moscow Center.
The month of August is usually one of the worst months of the year for US stocks. In years of a US presidential election (like 2020), August holds a special spot in the calendar for certain stocks.
We see an increase in short term call buying in Starbucks. Loyalty programs seem to be driving high customer demand.
As Europe reopens, UK’s BOE announces the economic recovery will be ‘V-shaped’. Tourist travel seems to be picking up and markets (especially tech stocks) reacted well – as is usual in this seasonal bullish period. Q2 earnings reports are on the horizon, with stocks priced for perfection.
Fiscal stimilus is ending in the US as government transfer reciepts and other forms of unemployment support expire. As elections come to the forefront and COVID cases increase further aid is likely. The effects on inflation will be muted until employment levels come back and wages increase.
AVC partners review Veronika’s participation in the Russian Portfolio Investment Conference where she discussed our Dividend Investment Research (DIR), and the new 13 to 15% income tax for Russian non-residents, down from 30%. We reviewed the influence of recent central bank actions stocks and bond pricing. Credit quality is likely to become more of Read more ➝