NN IP: Another brick in the wall of worry

Economic Outlook

A tale of two dovish central banks

The labour market report of May has taken a June rate hike off the table. Our view is now that July and September have a more or less even chance, provided of course that the trend in payroll growth at least stabilizes. Read more

Asset Allocation

Payrolls are another brick in the wall of worry

Equities fell initially on the disappointing payrolls report, but seem less sensitive to Fed expectations than before. Government bond yields fell further and the search for yield intensified. We upgraded real estate to overweight. Read more

Real Estate

Real estate is plain sailing

In the current low growth/low yield environment with limited risk of sharply rising bond yields, real estate remains an attractive investment that generates a high inflation-protected yield.   Read more

Equity Strategy

Fed dominates emerging market performance

Emerging market (EM) equities were able to perform well in February and March, to a large extent thanks to market expectations of a dovish Fed. Therefore, the weak US payrolls number gave EM equities a fresh boost.  Read more

powered by