Investing in Volatile Markets: Risk Management
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Blog Posts
Markets are digesting mixed signals as strong earnings contrast with softening sentiment and unclear economic data. Cautious guidance and weak consumer demand suggest fragility, though labour market stability offers support. Amid uncertainty, recent selloffs may present opportunities where valuations have reset but growth potential remains.
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AT1 CoCo bonds offer strong yields near 400 bps amid market uncertainty. Backed by well-capitalised banks with low credit risk and limited tariff exposure, they present a resilient investment opportunity in today’s volatile economic landscape.
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The “Mar-a-Lago Accord” is a speculative idea that the US may pursue a weak-dollar strategy to boost exports and reindustrialise. Unlike the 1985 Plaza Accord, global coordination now seems unlikely amid geopolitical tensions. If implemented, gold, silver, commodities, and high-dividend equities could benefit, but the policy remains highly uncertain.
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