What to make of Monday's market turmoil
By: Stefan Kreuzkamp
The markets easily withstood many adversities in the summer. In the coming twelve months equities and real estate remain our favorites, though their potential returns are only moderate.
Casualties of China's economic recalibration
A buoyant economic recovery, record stock markets and calm bond markets. Things have been going all too well and the next surprises are unlikely to be positive.
Rising Treasury yields have historically been anything but bad news for emerging-market bonds. In fact, most of the time this has even reduced their risk premium. Don't underestimate them.
The global economy is expected to achieve remarkably high growth in 2021. This is a good basis for the capital markets, but it creates risks and may require reallocations.
Looking at the divergence between the copper/gold ratio and real yields suggests that some caution may be in order.