Market Strategy

Independent thought. A different perspective. Unafraid, concrete advice.

Market Strategy

Global Cross Asset Strategy: Tightening of Lending Standards Could Replace Some Rate Hikes

  • The Fed hiked 25bps in the March meeting, as expected.
  • The fed funds futures market is once again pricing in rate cuts by end-2023. At Bulltick, we have long held that 2023 would usher in the next phase of the economic cycle, recession, but we do not think inflation will fall enough by end-2023 to allow the Fed to cut rates.
  • We hold our broad global macro strategy view, one that has worked well since last year, one that is defensive in nature and relies on overweights in sectors that historically outperform in stagflation and recession: healthcare, staples, energy and utilities.

March 28, 2023

Market Strategy

Perspectivas Macro Globales 2023

  • EE.UU en desaceleración. Nunca ha habido una recesión sin que los indicadores líderes estuvieron negativos. La inflación está impulsada por los salarios. Tasa de desempleo y confianza al consumidor como indicadores de recesión. La curva invertida indica recesión inminente. Bienes raíces en recesión y prediciendo recesión. Taylor Rule indica una tasa fed funds mucho más arriba. Hoy en día hay dos trabajos disponibles por cada desempleo; cuando eso baja, la tasa de desempleo sube.
  • Equity Risk Premium en Europa y Reino Unido abajo del promedio
  • China: La política cero COVID golpeó fuertemente a China

March 9, 2023

Market Strategy

Global Cross Asset Strategy: Fixed Income, the Fed, and Recession

  • Fourth quarter 2022 US GDP data posted further proof of the resiliency of the US economy.
  • We are watching JOLTS and real wages.
  • We recommend cash and cash equivalents such as 3- and 6-month T-bills yielding 4.6% – 4.7% as well as short-term investment grade corporate and government debt instruments at this juncture. As we move towards recession, IG should hold up relatively well with favorable financing conditions.

January 27, 2023

Market Strategy

Global Cross Asset Strategy: Potentially Premature Rotation Kicks off the Year

  • Global equities have rallied to kick off the year, led by a rotation to recovery stocks even before the recession occurs
  • Despite the underperformance so far year-to-date, we prefer holdings positions in those more defensive sectors
  • Consensus earnings expectations for 2023 of some 7%  y/y are too optimistic
  • EM equities are similarly off to a strong start


January 19, 2023

Market Strategy

Latin America Strategy: Brazil Risks Are on the Policy Front


Last Sunday riots broke out in the capital city of Brasilia in an apparent political insurrection against the 10/2022 presidential election outcome where former president Lula da Silva won by a razor-thin margin.

January 11, 2023

Market Strategy

Market Strategy: History Tells Us That The Fed Can Swing Quickly

The past 14 last-hike-to-first-cut periods in U.S. monetary policy averaged only 4.8 months. Many of the shortest ones were in the 1980s when inflation was high. (However, this is at least in part because high inflation necessitated much more frequent and unpredictable action by the Fed during the 1980s, different from today.)

November 15, 2022

Market Strategy

Market Strategy: Next Up: Mid-Terms and US CPI

Mid-terms elections have historically been unkind to the party prevailing in power and we expect this time to be no different. In today’s mid-term elections in the US, the Republicans are very likely to gain seats in both houses of Congress.

November 7, 2022

Market Strategy

Market Strategy: Recession and Fed Cuts On the Docket for 2023

The specter of recession is looming large in the minds of policymakers, investors, and households, as inflation has eroded the real purchasing power of households and the Fed signals that it is willing to drop a Volcker-type bomb on the economy in a bid to re-anchor inflation.

July 14, 2022

Market Strategy

Global Cross Asset Strategy: Stagflation is Now. Recession is Next.


Fed Chair Jerome Powell stressed, both in person and through the FOMC statement, the Federal Reserve’s re-discovered commitment to price stability.

June 17, 2022

Market Strategy

Latin America Strategy: Big Central Bank Hikes and Major Presidential Elections

Inflation remains well above target across the Latin American region, with Argentina, Chile, and Brazil headline CPI growth figures now well into the double digits. To their credit, central banks did their job and began hiking cycles a year ago with Brazil hiking more than 1000 bps since March of 2021. 

June 9, 2022

Market Strategy

Global Cross Asset Strategy: Recession Inevitable But Not Imminent

Of the recessionary indicators we follow closely, the majority do not yet point to imminent or near-term recession. Economic contraction is part of the economic cycle, and we maintain our conviction view that we are in decelerating part of the cycle, having reached (and passed) the peak. However, we believe recession is not a 2022 event and much depends on the Fed.

June 1, 2022

Market Strategy

Global Cross Asset Strategy: Inflation Woes Spilling Into Confidence Data, Threatening Growth

Various consumer confidence measures are showing warning signs on the future performance of the US consumer.

May 25, 2022

Market Strategy

Latin America Strategy: Political Risks Can Open Investment Opportunities

Colombia is faced with a key presidential election in less than two weeks, one which could risk institutional credibility and market sentiment. Brazil has a consequential presidential election in later this year in October.

May 19, 2022

Market Strategy

Global Cross Asset Strategy: Expect Fed Hikes and Sticky Inflation Regardless

After risk assets catapulted yesterday, irrationally exuberant over a comment Fed Chair Powell made effectively discarding the idea of 75bp hikes for the time being, today (as Bulltick Research predicted), markets came crashing back down to earth.

May 5, 2022

Market Strategy

Global Cross Asset Strategy: Bonds Tumbling, But Opportunities Remain

Global bonds are set for the worst monthly return they’ve seen in over 30 years, according to data compiled by Bloomberg, posting a negative 4% return so far in April, with 10 days still to go.

April 20, 2022