Latest from BCA Research

Special Report

GAI technology has made tremendous gains over the past year. It has advanced from being a mere “curiosity” to becoming an everyday helper. While the promise of GAI is enormous, its effects are still limited: Companies are still struggling with monetization while productivity improvement is still at least a year away. In terms of evolution, the focus is shifting away from “picks and shovels” infrastructure companies toward model and application developers.

Turkey’s macro policy stance can hardly be called orthodox. And yet, corporate profit margins will contract meaningfully this year. The lira can also fall massively even if inflation eases from the extremely high levels – just as it did in the 1990s.

Improved consumer morale will not compensate for the fading tailwinds to consumption. Neither will the wealth effects from higher stocks and home prices.

Special Report

We assess where emerging markets debt is on a strategic and cyclical basis. We find it has benefited from local central banks boosting their inflation-fighting credentials and governments improving financial stability. As a result, EM debt is behaving less like a risk-on asset, changing the role it plays in a global portfolio. We also expand our asset allocation playbook by assessing how the asset class behaves across the business cycle. While EM debt is more than a risk-on play, we suggest investors stay cautious on a cyclical horizon.

In this Insight, we revisit our long AUD trades, after the upgrade from our attractiveness ranking last week.

Bank Credit Analyst

This Special Report by BCA Research former Chief Economist Martin Barnes ranks the major economies by their economic and financial performance to find out who comes out on top.

Special Report

This Special Report by BCA Research former Chief Economist Martin Barnes ranks the major economies by their economic and financial performance to find out who comes out on top.

Global ag markets will become more volatile as anthropogenically induced climate change continues to degrade farmland. This will make price signals emanating from these markets less efficient in terms of processing supply-demand fundamentals. All else equal, food prices likely move higher, which will contribute to inflationary biases in the medium-to-long run. Investors will continue to seek out farmland investments as a way to diversify portfolio risk and raise absolute returns.

The Joshi rule real-time US recession indicator remains at an elevated 0.154 versus its recession event horizon of 0.200, indicating weakening US labour demand. With the last mile of US disinflation requiring labour demand to ‘catch down’ with labour supply, investors should watch the Joshi rule very closely to pre-empt a potential tipping-point. Plus: tactically long Portugal versus Europe, and wheat versus cotton; and tactically short USD/CLP, Qualcomm (QCOM), and Salesforce (CRM).

Our Portfolio Allocation Summary for March 2024.