Tramondo Quarterly (Q4 2021).

HIGHLIGHTS OF THE CURRENT EDITION

While growth stocks were able to outperform in July and August, yields across the globe enjoyed a dramatic comeback in September, enabling value stocks to break away from their market peers.

In its September meeting, the Fed indicated that moderation in the pace of asset purchases might “soon be warranted”. In that context, the so-called tapering process (reduction of asset purchases) is becoming a growing fear for market participants.

The introduction of China’s Common Prosperity framework (a broad set of measures and policies to address the growing wealth disparities and other critical social issues) has been a hotly discussed topic among investors.

During the summer, Switzerland’s economy made another critical step to leave the COVID-19 crisis behind once and for all. The reported GDP figures indicated that the domestic economy could close last year’s economic fallout.

There is increasing evidence that growth may have peaked over the summer as both early-cyclical macro readings and earnings revisions from equity analysts have been grinding lower for a few weeks. We believe that these developments clearly indicate that the world economy has entered the mid-cycle stage, requiring investors to rethink their current asset allocation.