Showing posts tagged with: USD

The 2016 US Elections

Blue Quadrant Research Team
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Market Commentary

The 2016 US elections, Q&A with Blue Quadrant Capital Management

Donald Trump has won the presidency of the United States and financial markets in general have not reacted well to this development. What are the implications of this surprise event for investors and specifically, global investors?   

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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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US Dollar Dynamics Positive

Blue Quadrant Research Team
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Market Insights

Synopsis

US current account deficit will narrow and possibly move to surplus as US energy production and net imports decrease. Accelerating US economic growth will lead to gradual rate normalization. Coupled with less global dollar liquidity and a smaller US current account deficit, the fundamental underpin for the global ‘carry’ yield trade will become progressively less favourable. These dynamics will attract capital flows back to the US, supporting sustained US Dollar bull market.  

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