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Thursday, March 18, 2021

Let's get into the minds of fund managers!

https://www.hedgefundtips.com/march-bank-of-america-global-fund-manager-survey-results-summary-2/

These are taken from BofA global fund manager survey and I'll just highlight some important elements.

Inflation has become the top concern for fund managers in March 2021.

The bond market rout caused by rising yields is also a major concern for the fund manager.  By the way, the US bond yields are expected to rise further because of the yen carry trades since investors are taking arbitrage opportunities in the US-Japan interest differential which is expected to widen.  Therefore, the US is facing a double whammy now.  The first whammy is the declines in China credit impulse and the second whammy is the yen carry trade.

http://sg-stock.blogspot.com/2021/03/chinas-monetary-tightening-will-impact_9.html

The yen started to depreciate (uptrend) against the USD in 2021!

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