Showing posts tagged with: US Macro

US GDP 2Q16

Blue Quadrant Research Team
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Market Commentary

US GDP 2Q16

Cyclical Factors weigh on US GDP but the foundation is laid for a powerful acceleration going forward

US GDP grew at a disappointing 1.2% (q/q, annualised) in the second quarter of 2016, well below consensus forecasts of 2.6% (Reuters). The main negative contributors, as has been the case in recent quarters, were a continuing reduction in inventory levels and weak non-residential investment spending. The change in inventory levels during the second quarter, subtracted 1.2% from overall GDP, while non-residential fixed investment subtracted a further 0.3%.

 

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Post-Brexit Q&A

Blue Quadrant Research Team
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Market Commentary

A Post-Brexit Q&A with Blue Quadrant Capital Management

The month of June saw some extreme volatility in financial markets, particularly following the surprise UK referendum result. How did the funds managed by Blue Quadrant perform?

Our funds are likely to report a drawdown of between 8% and 12% for the month of June in Rand terms. This was in part driven by the relative strength in the Rand, which despite the negative global developments, actually gained ground against most major currency crosses during the month. Our funds have between 50% and 90% invested in offshore markets, mainly in the US.

We also have a large weighting in US financials, which were disproportionately impacted by the Brexit vote and contagion fears stemming from the very large price declines in UK and European financials.

 

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The US Energy Revolution – A Review

Blue Quadrant Research Team
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Market Insights

The US Energy Revolution

US oil and gas production is expected to increase significantly over the next five years due to the use of new technologies able to unlock vast previously inaccessible oil and gas (shale) reserve formations creating a US Energy Revolution. Increasing US energy production and decreasing net energy imports have important implications for global US dollar liquidity going forward. Increasing US oil and gas production may depress global energy prices, creating substantial risks for major ‘petrostates’. Inherent political vulnerabilities may be exposed, leading to heightened geopolitical risks and risk of major energy supply disruptions. The current disparity in pricing between US natural gas prices and global gas- and oil prices will gradually be narrowed.  

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