Exposure rates of the Dorval Asset Management Range – August 5th, 2022
A recession in the United States? What recession? The debate on the US economy’s growth/inflation mix rages on among economists and observers, although a clear consensus has so far failed to emerge.
Exposure rates of the Dorval Asset Management Range – July 29th, 2022
Moves to unwind short positions have been gathering pace on the markets as a result of investors’ overly pessimistic positioning. The latest world economic indicators may be somewhat muddled, but they point more to a scenario of moderation, while corporate earnings reports are reassuring.
Exposure rates of the Dorval Asset Management Range – July 22nd, 2022
The worldwide economic slowdown is now established and is accompanied by a decrease in inflationary pressure. In the short term, this could support a stabilization or even an upturn on the equity markets.
Exposure rates of the Dorval Asset Management Range – July 15th, 2022
The financial markets abound with reasons for anxiety. The post-Covid world economy is in chaos and macroeconomic stats are sending mixed messages. In the US, inflation is picking up the pace and spreading, fueling doubts on the bearing of the moderation scenario. Meanwhile on this side of the pond, the energy crisis is the focus of attention, making the ECB’s job extremely difficult. Further afield, China is struggling with its zero-Covid strategy and challenges in the real estate sector. Yet we can single out two pieces of good news: (1) in the face of these risks, there are now significant risk premia and investors must strike a balance between the two and (2) not all areas of the world are encountering the same situations, therefore increasing the appeal of international diversification.
Exposure rates of the Dorval Asset Management Range – July 8th, 2022
The likelihood of the various scenarios on the table for the world economy are changing fast, almost every day, but Europe looks likes the main loser. European investors should perhaps look more to developed Asian markets, rather than the US.
Exposure rates of the Dorval Asset Management Range – July 1st, 2022
Dear Clients and Partners, Signs of an economic slowdown – bar China – have fueled an abrupt downgrade to inflation and interest rate projections for the quarters ahead. Should equity investors take fright at this news or rejoice?
Exposure rates of the Dorval Asset Management Range – 24th June 2022
It has become tremendously challenging to draw up macroeconomic projections in a post-Covid world. In the absence of clear visibility, the likelihood that the various scenarios will materialize changes with every set of stats published and the ensuing reaction from market participants.
Exposure rates of the Dorval Asset Management Range – 17th June 2022
With share indices wiping out their 2021 gains (cf. chart 1) and the bond markets experiencing their biggest correction in history (cf. chart 2), investors are quite rightly wondering whether the financial markets have consolidated sufficiently for them to go back in the water. There is both good news and bad in this respect.
Exposure rates of the Dorval Asset Management Range – 10th June 2022
Surging inflationary pressure is jeopardizing stabilization scenarios for the world stock-markets. The ECB has now also joined the Fed on the route to swifter monetary policy normalization, fueling investor fears on a fragmentation of financial conditions between countries of the north and south in the euro area.
Exposure rates of the Dorval Asset Management Range – 3rd June 2022
The plunge on Wall Street in April and May unleashed opportunities that could drive selective re-exposure to tech stocks. Meanwhile, the bond markets could stabilize in the US, although not just yet in Europe.
Exposure rates of the Dorval Asset Management Range – 27th May 2022
With the decline in US tech stocks petering out and the US bond market stabilizing, a rebound on the equity markets could be on the cards for the short term. However, the oft-mentioned notion of a peak in inflation must be set into context.
Exposure rates of the Dorval Asset Management Range – 20th May 2022
With both cyclical and monetary conditions still challenging, the equity markets’ sharp correction since the start of the year now raises questions on the timeliness of incorporating risk back into portfolios.
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