The Tech Boom Is Over?
Despite reporting stellar results for the second quarter, many tech companies were punished by investors for their more cautious forecasts. Major lockdown-winners are now warning that growth going forward might be pressured as consumers get back to their pre-pandemic lives.
Go Deeper (2 min read)Higher Interest Rates? Bullard Says "Yes"
St. Louis Federal Reserve Bank President James Bullard thinks that the pandemic may have pushed the U.S. into an era of stronger growth and higher productivity. In contrast with the last decade of low growth, low productivity and low inflation.
Go Deeper (2 min read)Bubbles? What Grantham Is Seeing
Right now, Grantham believes that the stimulus, vaccine optimism and the ongoing economic recovery have enabled investors to buy some time. Yet, serious issues such as rising interest rates, sustained inflation, labor shortages and exploding commodity prices could trigger the next fall.
Go Deeper (2 min read)In June, inflation continued its rapid ascend, rising at its fastest pace in nearly 13 years amid an ongoing increase in the cost of used vehicles, food and energy.
Go Deeper (2 min read)Shortages Cool Down Growth
The Institute for Supply Management said on Tuesday that its non-manufacturing activity index has fallen to 60.1 while it stood at 64.0 in May. A reading above 50 indicates growth in the services sector, which accounts for two-thirds of U.S. economic activity.
Go Deeper (2 min read)More from Markets
Emerging Markets, A Dangerous Bet?
A rise in rates in developed economies could lead to a considerable capital flight from riskier, emerging regions to safer, developed economies.
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Global Manufacturing Picks Up
Manufacturing activity is picking up in the U.S. as the economy re-opens. However, the market is still pressured by a lack of workers, a shortage of key products (semiconductors) and booming commodity prices.
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Bubbles, What Bubbles?
We remain cautious on current valuations and are not in a hurry to buy over-valued growth stocks, we prefer to let some time pass for inflationary pressure to cool down.
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Growth Versus The Fed
Inflation fears faded at the start of the week as Fed officials repeatedly downplayed the effects of higher price pressures and have confirmed their belief that the Central Bank could engineer a soft landing.
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Labour Market Jumps
The U.S. jobs market saw an improvement in terms of initial jobless claims which fell to 406,000 for the week ended May 22. This represents a steep decline from the previous week’s 444,000 claims.
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Inflation And The Fed, What Lies Ahead?
We have been cautious on U.S.-valuations since these reached new heights at the start of the year. After a sell-off, most growth stocks regained some steam. Where could this go?
Go Deeper (3 min read)
