Cambridge Weekly -23rd November 2020

More tunnel before the light The November rally in stock markets finally petered out last week as it felt as if ‘November finally got the memo about 2020’. This was despite further positive vaccine news that bolstered optimism for next year. Last Monday, US firm...

Cambridge Weekly -16th November 2020

Change is in the air.    Investors have enjoyed another very good week. Optimism had already returned the previous week, with the US election eventually delivering a clear verdict. Last week then brought the news that literally everybody had been waiting and hoping...

Cambridge Weekly – 9th November 2020

Looking beyond the obvious We wrote only last week that markets hate uncertainty. Given that equity, bond and commodity markets were all quite a lot stronger at the end of the week, many investors must have gained clarity, if not optimism. There are a lot of important...

Cambridge Weekly – 2nd November 2020

Unsettled week ahead – or behind? In the first article of The Cambridge Weekly we normally discuss the relevance of the weekly news flow for the development of our longer-term picture for our investors. Usually, our conclusion is that the noises of the week need to be...

Cambridge Weekly – 26th October 2020

Sunlit uplands or COVID gorge? Halloween is around the corner and markets had plenty to frighten them last week. Across Europe, the second wave of infections has risen higher than the first. While new lockdown measures are less stringent this time (schools and...

Cambridge Weekly – 19th October 2020

Watching and waiting A noticeable winter chill is in the air. The threat of fresh lockdown measures has become reality, with renewed restrictions coming into force not just in the UK, but across most of continental Europe as well. But unfortunately, the UK – once...

Cambridge Weekly – 12th October 2020

Baffling market optimism Following the unsteadiness of September, markets have further regained their composure and continue to drift upwards. This stands in stark contrast to the flow of bad news. The White House, centre of power for the mighty US, has become a COVID...

Cambridge Weekly – 5th October 2020

The Cambridge Weekly Update   A question of time horizons A US presidential debate that nobody would want to watch twice was followed by reports that COVID reality has finally caught up with a US president who insists that only he can determine what is real and...

Cambridge Weekly – 28th September 2020

The Cambridge Weekly Update A recovery on hold September continues to bite equity markets. Stocks everywhere wobbled again last week and even though they bounced back, the S&P500 is down around 8% in US Dollar terms for the month. UK investors might notice less of...

Cambridge Weekly – 21st September 2020

Taking a step back to look forward Stock markets have stabilised and started trading sideways, in a sign of healthy consolidation following their extraordinary recovery rally since late March. Notably, the darlings of the recovery, namely US large cap tech and growth...

Cambridge Weekly – 14th September 2020

Frictions and contradictions September has ended what now feels like a ‘goldilocks’ summer for investors, and political, societal and capital market frictions have returned to the stage with a bang. However, the fact that stock markets have not simply plunged on bad...

Cambridge Weekly – 7th September 2020

Market dynamic of a K-shaped recovery Markets’ summer holidays are over. Throughout August, risk assets made some impressive gains, while the global economy remained in its deepest ever recession. After equities were then catapulted to eye-watering valuation levels,...

Cambridge Weekly – 1st September 2020

Big tech gets bigger while the Fed takes the easy option In a week where Donald Trump kicked off his re-election campaign in earnest, global investors showed it is indeed “America first”. US equities continue to push at all-time highs, having recovered everything lost...

Cambridge Weekly – 24th August 2020

Fed leaves bond investors with that sinking feeling Capital markets were mostly steady – if a bit on edge – last week, as they have been for most of August. At least the US maintained positivity, although the extent of gains were not spectacular. Even so, both the...

The Cambridge Weekly – 17th August 2020

COVID II the sequel – as scary as the original? The pleasures, and then increasing discomfort, of the UK’s unusually broiling August weather offered a welcome distraction from the seemingly never ending COVID news flow of gloominess. As the heatwave came to an end...