As investors continue to feel nervous about the health of the global economy, the $US10Y-$US03MY curve continues to invert..
After a breakout first half in 2019, Emerging Market equities ($EEM as a proxy) have begun to loose some steam.
As Q2 2019 is underway, global financial markets have experienced a melt-up in assets prices, with some markets up over 20 percent year-to-date. However, despite the run in global asset prices, there is one country that has missed out on the rally, and that is Malaysia.
One market that has quietly, but powerfully, performed well for 2019 year-to-date has been Saudi Arabia's Tadawul All Shares Index, up 13.82% as of April 3rd 2018.
It interesting to note that despite the nice gains Turkish equities saw in January 2019 (+15.7%) to make up
As the "January Rally” continues to take hold in the global markets, markets seem to have gotten back on stable footing.
Though we do believe that the current market rally has some legs to stand on, we do have our eye on the the 2 Year/10 Year US Treasury yield curve, and urge investors not to forget about this important market indicator. As of this post, the spread on the 2 Year/ 10 Year spread is a dangerous 0.19 basis points away from inversion.
As shown in our chart below, the 2 Year/ 10 Year spread has not been this low since before the onset of the 2009/2009 global Financial Crisis. The threat of yield curve inversion, coupled with slowing economic indicators around the world is something investors should be mindful of and prepare for.
As the US continues to benefit from a resurgence in global growth, the one area of the US economy that has benefited greatly is the US housing market.
Through our research, we examine the bright spots of the US real estate market, assess the recent trends within the US homebuilder and construction industries, look at the short-term risks that could affect US housing, and recommend investment opportunities for investors.