Generative AI-related rally resumed in May. Much of the recent market gains are down to excess liquidity that was begotten by the massive pandemic stimulus, creating a dichotomy between multiple economic challenges and exuberant markets. The Fed is unlikely to step in to prevent the bubble as it is ...
The US economy is in the “Overheating” phase, so stronger growth brings higher inflation. Tight monetary policy means recession is still likely over the next 12 months. Stay defensive....
European stocks have massively underperformed US ones since the GFC. Demographics and productivity say this trend will continue, but is that really so?...
MacroQuant sees significant downside risks to stocks over a 1-to-3 month horizon and suggests increasing allocation to long-term bonds. The model favours defensive equity sectors but is also hedging its bets by overweighting materials....
Democrats remain slightly favored for the White House because they are the four-year incumbent presidential party and the economy is not in recession. But if the unemployment rate rises in the lead up to November, then Biden and Democrats will become disfavored regardless of Trump’s convictions....
We comment on whether Treasury market valuation is sufficiently attractive to get long bonds and consider some of the common arguments for why yields may yet make new highs....
The uranium market is at a crossroads of economics and geopolitics. This report presents an overview of supply and demand factors that have led to the formation of the present supply deficit....
In a guest research report, Martin Barnes, BCA’s former Chief Economist, revisits the idea of the Debt Supercycle and discusses how its true end may emerge in response to a fiscal crisis in the US over the coming few years....
The three major oil forecasters – IEA, EIA, and OPEC – are forecasting oil demand growth until 2025 to be broadly in line with its range over the past four decades. On a cyclical horizon, we give high odds that a recession will begin within the coming 6-12 months, disappointing these oil demand fore...
