Financial Capital

This month, we discuss the rotation out of Big Tech and into other sectors, the outlook for US rates, and the fast-moving US election.

Resilient global growth data mask divergent fortunes among major economies: the US and some emerging markets are growing strongly while most other developed markets are at a crawl. Still, global inflation is falling and multiple policy rate cuts are expected in the coming months. Upside inflation surprises cannot be ruled out, notably given the wars in Ukraine and Gaza. But there is a clear, if narrow, path to a global economic soft landing. That markets have fully priced in this optimistic outcome nonetheless suggests that risks are skewed to the downside. Bonds and gold are obvious places to take shelter, while pockets of value in equities can also be found.

In this article we explore the opportunity presented by US small-caps, overlooked in recent years by investors who have driven a powerful but ever-narrowing rally in US large-cap stocks instead.

In June’s market update, we highlight the continued rally in Big Tech stocks, the prospects for rate cuts in the months ahead, and the impact of market-moving elections.

With recent data showing that healthcare spending in the US is outpacing GDP, Neil Benjelloun, Bedrock’s Head of Private Markets, sheds light on the growing opportunity for the private equity industry to support the ongoing transformation of the market. Sharing key insights and takeaways from a Q&A session he hosted with Elliot Cooperstone, Co-Founder and Managing Partner of InTandem Capital Partners.

In this market update, we discuss the fading market rally, uncertainty about the trajectory of rates and what we recommend in fixed income, and US tariffs on China’s EVs.

In this market update, we discuss more changing interest rate expectations and an equity market correction.