Q3 Commentary from Portfolio Manager Clement Chiang sheds light on the signs of fragility as markets adjust to the higher-for-longer interest rate narrative.
Musings on current conditions, potential implications and how different scenarios present opportunities for disciplined long-term investors.
Monetary policy works in long and variable lags, meaning it takes time for the effects of higher rates to become clear.
We believe caution is warranted, especially if central banks continue pressing ahead with their rate tightening agenda.
Each market cycle is unique, but similarities emerge. Our process helps us navigate market ebbs and flows while positioning for attractive opportunities.
A 50bps rate hike is unusual and validates the zeal with which Governor Macklem wants to normalize monetary policy as quickly as possible.