Multi-Asset Essentials
How far can ‘no landing’ momentum run?
Investor sentiment on Cyclicals ex Tech vs. Defensives has become stretched nearterm, according to ASR’s SBIs. US breakevens sentiment looks extended too. But real yields have room to climb a little higher. In FX, we still like long AUD/CHF.
Spotlight on skew and implied correlation as VIX rises
With upside inflation surprises threatening to dampen P/E multiples, S&P 500 needs continued positive activity surprises and further business sentiment gains to justify an uptrend. Even after recent rise, hedging costs are low. Collar strategy attractive.
Flow focus in Japanese equities
An early return to February’s momentum in Japan requires stronger buying impulse from one of the main investor groups. Pension funds were heavy sellers at FY-end, with corporates & foreigners quiet. Hopeful signs among individual investors.
