More Evidence of China Slowing Permeating Asia – 7/7/2015

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It seems as though each day we see more evidence of China’s economic slowing affecting its neighbors. When a force as large as China slows dramatically, we should expect as much. Here are today’s regional economic releases: Taiwan YoY export growth hitting multi-year lows: Taiwan CPI in deflation all year: Philippines CPI at decade lows:

Are Staples and Health Care Poised for More Outperformance?

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Today’s cyclical jolt aside, it appears from glancing at relative performance charts of growth counter-cyclicals (our code wording for the Consumer Staples and Health Care Sectors) that they could be poised for a relative performance breakout. Indeed, in all major regions of the world, growth counter-cyclicals are outperforming – or look poised for another leg […]

Inflation Expectations Are Turning Back Over In The US

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TIPS derived breakeven inflation expectations have started to fall once again in May. For a little context, starting in last June, breakeven inflation started a steady march lower that lasted until January of this year. Since that time, we have seen a rebound in inflation expectations. For example, five-year TIPS derived breakeven inflation fell from […]

A Precarious Association

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When the ECB announced plans for its own asset purchase program back in January, we commented on the big difference in the relationship between those purchases and equity performance when comparing the U.S. and Europe.  As the MSCI Europe Index hovers near decade highs (and asset purchases appear poised to expand at an accelerated pace over the […]