Portfolio Watch: Here comes the metals meltdown..
Happy Friday, and welcome to our weekly portfolio overview. After a tricky few days, we have started gaining substantial traction in our portfolio again over the past 1-2 trading days.
Risk assets seem to be stabilizing, with crypto leading a new bull wave, while metals are selling off right, left, and center alongside a turning tide in the USD versus Asian FX and Lat-Am FX overall.
Over the week, our biggest concern, given our current tilt in industrial metals, is that manufacturing rebounds faster than anticipated by many.
The details from the Philly Fed survey are among the firmest we have seen in more than two years, and there is little doubt left that the underlying industrial cycle is improving now. The question is whether it is a false flag for the broader and more important services sector.
Chart 1: The US economy is gaining speed beneath the hood
It’s been a muddy July, not only weather-wise, but also in markets. The signs of an equity rotation, the turning tide in USDJPY, the metals volatility & softer rates probably align. Maybe the stars are finally gearing up for a risk-friendly 4-6 weeks upcoming?
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