Market Sentiment Catalysts, TARA and Blockchain

TARA is the Market's New Squeeze

Investors have noticed that There Are Reasonable Alternatives (TARA) to equities. Sentiment across equity markets has grown markedly worse as U.S. earnings season marches on. Some downbeat earnings reports from U.S. corporates have raised fears of cash-strapped consumers focusing on essential items and being particularly price sensitive as inflation continues to soar. Across industries, companies are reporting increasing margin pressure associated with Chinese supply chain issues and rising transportation and production costs. Although market sentiment is poor, potential positive catalysts do exist. Although unlikely, some sort of diplomatic action on Ukraine would help, as would signs that inflation was beginning to moderate, potentially ameliorating the extent to which the Fed feels it needs to push on rates. The re-opening of China and some additional positive policy changes could also help.

Blockchain: What is so smart about smart contract platforms? (CoinDesk, 2022)

CoinDesk Indices' launch in December 2021 of its Digital Asset Classification Standard (DACS) helped to define the different industries that digital assets belong to. The Smart Contract Platform sector, on which this paper focuses, is the second largest sector in DACS, with 88 assets representing nearly 35% of the digital asset market as of March 31, 2022.

Gold Demand Trends Q1 2022 (World Gold Council)

For compliance reasons, this paper is only accessible in certain geographies

World Gold Council reviews the gold market for Q1 2022, offering insights and observations on the key trends. It also features its outlook for the remainder of 2022.

In Search of a Trigger to Turn Sentiment Around (NN IP, May 2022)

NN IP debates the recent sell-off in secular growth stocks, but concludes that sentiment is unlikely to improve significantly until positive catalysts emerge again. These may take the shape of a diplomatic solution in Ukraine, signs that inflation is moderating, or that Chinese policy changes are beginning to benefit the Chinese economy as it comes out of lockdown.

Ukraine War Will Bring Europe to the Brink of Recession (T. Rowe Price, 2022)

For compliance reasons, this paper is only accessible in certain geographies

T. Rowe Price suggests that European consumer confidence has been badly hit by both the war in Ukraine and surging inflation, a combination which may push European economies towards recession.

Social Bonds: Financing the sustainability revolution (Candriam, May 2022)

For compliance reasons, this paper is only accessible in the UK & Europe

Candriam investigates the social bond sector, noting that these products are often used by investors to finance some of society’s most pressing issues, and how they play a significant role in helping to deliver the 2030 targets associated with the UN’s Sustainable Development Goals (SDGs). 

Muni Mutual Funds: Cornerstone of a strong portfolio (FTSE Russell, May 2022)

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This paper from FTSE Russell explores the characteristics of the municipal bond sector and highlights a new set of indices and how munis have performed relative to corporates and treasuries.

Short duration high yield and fallen angels (Insight Investment, May 2022)

For compliance reasons, this paper is only accessible in certain geographies

Insight Investment highlights the particular attractions of the short-duration high yield and fallen angels credit markets.

Private Equity: Sustainability Firmly in its Sights (M&G Investments, May 2022)

For compliance reasons, this paper is only accessible in certain geographies

M&G examines how the private equity sector has embraced ESG and is now aligning asset owner capital with what really matters.