Value With Momentum — according to Feifei Li (Head of Equities, Research Affiliates) Value stocks are translated into momentum stocks in recent times as the vaccine rollout had fuelled a new prospect of growth that favors stocks that are value-oriented. Value investing refers to buying stocks that are valued cheaper relative to their fundamentals. On a quantitative investing basis,...
Category: Daily Blog
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Tech Recovers, Inflation Trade Loses Stream
The pullback in Treasury yields has helped the tech-heavy Nasdaq 100 to outperform the Dow Jones Index by the most in seven weeks. Meanwhile, Wall Street’s great inflation trade has lost stream. The inflation gauge retreated from multi-year highs, while the S&P 500 was largely stable. Even the value strategy finally came to an end,...
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Beijing Targets to Suppress Bubbles in Metals, Property, and Crypto
China sees challenge in maintaining order in the financial markets as money floods into assets from housing to commoditiesand stocks. This month alone, the government vowed to revive the idea of property tax, supervise hikes in mortgage rates in some cities, tackle price speculation is in metals, banned the mining of cryptocurrencies and played down calls for a stronger...
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Bitcoin Soared on Musk’s Support to Improve its Green Credential
Cryptocurrency trading has been gripped by significant volatility over the past two weeks. Elon Musk tweeted on Monday to indicate support for what he says is an effort by miners to improve Bitcoin’s green credential. According to ZERO Markets’ Metatrader 4 platform, Sunday saw the largest cryptocurrency, Bitcoin, slumped to as low as $31,132. Following the tweet, Bitcoin...
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Bitcoin Plunges and Rallies 30% in One Day
Bitcoin on Wednesday plunged 31% in the morning, followed by a 33% resurge in the afternoon. The significant plunge on Wednesday looped billions in value before comments from some prominent proponents helped to fuel a torrid rebound. The frantic selling had led to outrages on major crypto exchanges from Coinbase to Binance and dominated chatter...
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Central Banks Firm on Keeping Rates Loose as Commodity Prices Surge
The recent fall in the surging commodity prices hasn’t yet triggered any traditional responses in currencies and bonds. Different from the commodity rallies in 2008 and 2011, the recent retreat in prices saw yields on Treasuries and currencies of major exporters like Australia have barely budged. Similarly, inflation expectations have also disconnected from the moves...
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Iron Ore Marks New Record Highs, Jumps 10% within Minutes
Iron ore futures leaped more than 10% to $226 in Singapore to a record high on Monday open. The recent surge in prices has been primarily driven the rampant Chinese demand and the wider pick-up in commodity prices due to higher inflation expectations. According to the commodities analyst, Vivek Dhar at Commonwealth Bank of Australia, commodities...
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Aussie Falls 50 points as China Halts Economic Dialogue with Australia
China in a largely symbolic move to signal its increasing tension with Australia, announced today to suspend a regular economic dialogue with Canberra and blames the ‘Cold War Mindset’ of Australian officials. The National Development and Reform Commission stated that it was indefinitely halting all activities under the China-Australia Strategic Economic Dialogue. The last Economic Dialogue...
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Commodities Hit New High on Positive Oil Demand Outlook
The recent economic recovery has raised expectations on renewed energy demand, this prompted commodities prices to make new highs. The Bloomberg Commodity Spot Index is at the highest level since 2012. The index tracks price movements for 23 raw materials. The retreat in the greenback has spurred buying of precious metals including gold and silver. With spot...
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US Tax Hikes Eyeing as High as 43.4%
Joe Biden is set to propose a capital gain tax for wealthy individuals to 39.6%, almost doubling the current base rate of 20% to address social and income inequality. For wealthy individuals earning $1 million or more, federal tax rates could be as high as 43.4% to reflect the new top rate coupled with an...