Category Archives: Macro Analysis

Why US Stocks Appear Unattractive

. Looking forward, the bumpy ride in the US is likely to continue, given the persistence of several factors, including a pending interest rate hike by the Federal Reserve (the Fed) and expensive US stock valuations. Without the tailwind of easier

Dalio: Japan Is Undergoing an ‘Ugly Deflationary Deleveraging’

Japan in an ugly deleveraging process In his paper released in February 2012, providing An In-Depth Look at Deleveragings, Ray Dalio—the founder of the $160 billion hedge fund, Bridgewater Associates—discussed that Japan is undergoing an “ugly deflationary deleveraging” process. Enlarge

Brazil Leads the Fall in Latin American Currencies

Mixed cues from Latin America Latin American currencies were trading on mixed cues against the US dollar after the FOMC (Federal Open Market Committee) statement on September 17, 2015. Although a decision to hold off the hike in interest rates

How Bitcoins Have Evolved

Introduction of the bitcoin The bitcoin, which made its debut in 2009, is often referred to as the world’s first decentralized digital currency, and it has the highest market capitalization when compared to its peers. Its invention is credited to Satoshi

Logistics Stocks Fall due to Downturn in the Shipment Index

Manufacturing fell to -5 in September 2015 The Richmond Fed Manufacturing Index provides insight into price pressures on manufacturing activities. The composite index of manufacturing fell to -5 in September as compared to a reading of zero in August 2015.

US Dollar Index Strengthens as Retail Sales Rise 0.2%

Retail sales rise to $447.7 billion According to the U.S. Census Bureau, month-over-month retail sales rose by 0.2% in August. The rise was primarily driven by miscellaneous store retailers, food services, and the motor vehicle sector, while the offsetting effect

Euro Slipping ahead of the ECB Meeting

ECB Praet interview Twice since September 22, Peter Praet, a member of the executive board of the ECB (European Central Bank), noted that the ECB is open to the idea boosting the quantitative easing program. The current program involves buying

FOMC’s September Meeting: US Fed Keeps Rates on Hold

US Fed keeps rates on hold at the September meeting The Fed decided to keep the interest rate on hold between 0%–0.25% in the FOMC (Federal Open Market Committee) meeting on September 17, 2015. The Fed Chair, Janet Yellen, cited the

US Dollar Index Strong ahead of European Central Bank Meeting

US dollar index rises after FOMC meeting After the Federal Open Market Committee (or FOMC) meeting by the US Federal Reserve, there has been a significant rally in the US dollar index. Primarily driving the bullish bets on the US dollar

Key for Investors: Understanding the Consequences a Rate Hike

Tightening economy Gold, as an investment class, has features that are different from other assets. Historically, gold has an inverse relation to the interest rate. However, the easing and tightening of the monetary policy by the FOMC (Federal Open Market

Brazil’s Rating Downgrade Didn’t Surprise Investors

Market reacts to Brazil’s rating downgrade A sovereign credit rating downgrade was already in the cards for Brazil. The stock markets did react, but not substantially. The iShares MSCI Brazil Capped ETF (EWZ) fell 0.34% at the close of trade

US Gulf Coast 3:2:1 Crack Spread Was Up Last Week

US Gulf Coast 3:2:1 crack spread The benchmark US Gulf Coast 3:2:1 crack spread rose ~1.44% last week. It hit $11.087 per barrel on Friday, September 11. On Friday, September 4, the spread was $10.929 per barrel. For context, the US Gulf

Precious Metals: Why Investors Are Waiting until September 17

Gold and the interest rate hike With the growing anticipation of the interest rate hike by the Fed, all eyes are set on its relative impact on investors’ portfolios. Specifically, investors are watching the investments in gold—a safe-haven asset. Gold is

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