Greetings,
Alternatives: Most private equity managers are preparing for a market downturn.
Rates: Equity risk premium and term premium have been correlated and are in a structural decline, partly driven by global quantitative easing.
Commodities: Gold has been increasingly correlated to Treasuries, especially at the short end of the curve. The trend suggests that gold prices are now more sensitive to the Fed’s policy trajectory.
China: Various business surveys support the World Economics’ grim SMI report showing a sharp contraction in business activity.
United States: Markets now expect the Fed to take its benchmark rate below 1% by early next year.
Food for Thought: Film tickets sold:
Edited by Devon Lall
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