Crossroads: At the Intersection of Geopolitics and Geoeconomics
North America The United States (US) Congress passed the largest economic relief package in US history in response to the coronavirus pandemic. The deal includes $300 billion allocated for cash payments to individuals, over $350 billion in loans for small businesses,...
Is the Covid-19 Awakening Undercurrent Threats and Underwriting a Paradigm Shift? Markets, Statecraft, and the Dollar, Part I
The authoritarians Spartans invaded the democratic Athens in the spring of 431 BCE. The Athenians evacuated their estates – as Themistocles had taught them half a century earlier – crowding into the walled city and watching smoke rise on their horizons as the Spartans...
Weekly Market Update
Market Action Global equities rallied a bit this week as we had a few days of gains in the markets. However, markets continued to decline on Friday and many experts believe we are still in for major decreases as the COVID-19 crisis rages on. The yield on the 10-year...
Managing Rising Risks in Times of Uncertainty
This commentary (unusually longer than normal due to the circumstances) has three distinct parts: An update with our economic and market assessment, a brief presentation of graphs that portray economic trends, and a brief discussion about issues related to economic...
Weekly Market Update
Global equities continued their decline this week amid the continuation of the COVID-19 global health crisis. Volatility remained extremely high, reaching 85 on Wednesday before dropping back down to 63 on Friday. The yield on the US-Treasury note rose 0.16% to 1.08%...
Crisis Mode, Portfolios, and Responses: A Buffer or an Amplifier?
In this week’s commentary we employ lots of graphs, which in our humble opinion, tell us an unfolding story that might be full of challenges but also portfolio opportunities. So, first a quick refresher of market crashes. Source: CNBC Then, a helicopter view of the...
Weekly Market Update
Market Action Global equities were dramatically lower on the week, officially entering bear territory for the first time in 11 years. On Thursday, the S&P 500 suffered its largest one-day percentage drop since 1987 while Europe suffered is largest one-day drop on...
When Volatility and Turmoil March On
The market moves of this week have certainly garnered a lot of attention and inspired much ink to be spilled speculating on causes, meaning, significance, and future ramifications. Indulge us as we add our own voice to the mix. While stocks had their largest point...
Weekly Market Update
Market Action Global equities increased slightly on the week, but the coronavirus outbreak continues to influence markets. The yield on the US 10-year Treasury note hit an all-time low of 0.67% before bouncing back up to 0.76% The price of a barrel of West Texas...
Fed in Action, Volatility, and Expectations: Are There Any Clear Signs?
The Fed cut rates yesterday by 50 bps. It was a move expected but not between meetings of the FOMC. Such a rush sent the wrong signals, generated some panic (“they know something”), misfired, undermined credibility, and limited its ability to act when the next...
