Fiscal Policy In The Spotlight

Fiscal policy is likely to be eased modestly in most advanced economies over the next two years. Ironically, fiscal stimulus is coming to America just when the economy has reached full employment. The market is pricing in too little Fed tightening over the remainder of the year. The dollar’s swoon is ending: Go short EUR/USD with a target of parity by the end of the year.

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The Signal From Commodities

Concerns over the Chinese economy, a withdrawal of speculative demand, and strong supply growth have all weighed on commodity prices over the past few months. All three of these forces should ebb over the coming months, providing a more benign cyclical backdrop for commodities and commodity-related investment plays.

To access the full report entitled “The Signal From Commodities”, please click here.