Opinion

US inflation has fallen back to 2.4 per cent, not far from the Federal Reserve’s target. In Europe, the inflation levels of the largest economies are already well below the 2 per cent target of the Bank of England and the ECB, just as we saw in the years before Covid.

The cold, wet, and miserable weather does nothing to dampen Jason ‘IPO’ Lee’s spirits as he arrives at Findel after a grueling journey from Hong Kong. He has chosen Luxembourg as a launchpad for the European arm of his AI fund.

Following the Great Financial Crisis, the western monetary madness led to years of outperformance for US equities. Now that central banks are lowering interest rates and the global economy seems to be picking up, emerging markets are becoming attractive again.

I was brought up in an investment era where bond investors proudly positioned themselves as “smart money” investors, in contrast to the “dumb money” crowd that invested in equity markets. But it’s becoming increasingly clear that these bond aficionados may need to relinquish their self-awarded title.

Last weekend marked the second anniversary of the current bull market in equities. Since hitting its low point on October 12, 2022, the MSCI All Countries World Index has surged about 50 percent, the S&P 500 has risen by around 75 percent, and the Nasdaq has doubled. The driving force behind this impressive rally? The so-called “Magnificent Seven” stocks, which have nearly tripled in value over the same period.

Soaring oil prices, solid job growth, and a seemingly unhurried Powell have forced markets to significantly scale back expectations regarding Federal Reserve rate cuts. However, Powell and his colleagues will be in for a lot of trouble if they don’t cut rates at each of the upcoming meetings.

The regulations surrounding the European sustainable finance package seem to have entered somewhat calmer waters for now. Nevertheless, the topic of transition financing and transition investing remains relevant, especially as there is a need for clear frameworks and definitions.

Investment Officer, once in a while, has a conversation with investment expert Jan Longeval to discuss his views on economic and financial developments. This time, he warns about the risks of Central Bank Digital Currencies, or CBDCs.

Inflation in the Eurozone has fallen to 1.8 percent. This marks the first time since June 2021 that inflation in September dropped below the ECB’s target of 2 percent. Despite many experts claiming that the central bank interest rate can’t be lowered much this time, the ECB now has plenty of reasons with this latest inflation figure to significantly cut interest rates.

Benny Bürocratie is exasperated as his wife drops him off at the Trier bus station. His daughter has been rehearsing for months for today’s school play. Fortunately, his wife can attend and record the event, but Benny has to be in the office.