Leaving the Geopolitics and Inflation Focus Behind for H2 [VIDEO]

Jordi Visser

down arrow

In this latest installment of Real-Time with Jordi Visser, Jordi takes us through the current market focus and ways he thinks the picture is changing into the second half of the year. While market moves year to date have been centered around 1) uncertainty over the Federal Reserve rate hikes, 2) inflation pressures, 3) geopolitics in Eastern Europe, and 4) China’s Covid lockdowns, Jordi believes these are now priced in and the second half will be focused on peak inflation, slowing growth, no recession, and China reopening. He believes these will lead to a sustained rally in the second half of the year. This would likely be a change that many investors are not yet positioned for.


Key Takeaways:

  • The first half of 2022 brought bond uncertainty for the first time since the Lehman Brothers collapse of 2008. As the MOVE Index, a measure of bond volatility, ends its rise, Jordi evaluates the potential changes to other risk assets, including equities. 
  • Jordi also points to May valuation bottoms in risk assets with changes in credit spreads, LatAm carry trades, and Muni ETFs. As assets continue to improve, Jordi believes that market participants will increase invested balances. ­­­­­
  • Jordi points to signs that economic growth is slowing from the rate rise.  He shows indicators related to both the housing market and the labor market.
  • Finally, Jordi evaluates China's reopening and stimulus, and sees Chinese tech companies as a catalyst to lead other global asset prices higher.

About these videos: Our market videos seek to provide a data-focused interpretation of the market's most critical developments. Real-Time with Jordi Visser is a recurring series produced by our President and CIO based on his macro views. The purpose of his series is to isolate macroeconomic indicators (“green marbles”) that are telling the true story of the market, rather than relying on the narratives or stories often portrayed as news. Jordi is a unique thinker and tends to publish these videos during market dislocations/regime shifts when he sees areas where his views differ from consensus sentiment.


Disclosures: This content is provided to you by Weiss Multi-Strategy Advisers LLC (“Weiss”). The foregoing information contains forward-looking statements, which present the Chief Investment Officer’s expectations and beliefs regarding future financial performance, and assumptions or judgments concerning such performance. Any such statements involve estimates, assumptions, judgments, and uncertainties, and you should not rely on such statements to reach conclusions or make any investment decisions. You will not necessarily be informed if the Chief Investment Officer’s expectations or beliefs change after the date hereof. Weiss has no control over information at any unaffiliated site hyperlinked to in this communication. Weiss makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any unaffiliated hyperlinked site. The inclusion of an unaffiliated third-party hyperlink does not imply any endorsement, investigation, verification or monitoring by Weiss of any information in an unaffiliated hyperlinked site. In no event shall Weiss be responsible for your use of an unaffiliated hyperlinked site. This is not intended to be an offer or solicitation of any security. Any such offer or solicitation may only be made by means of a prospectus or confidential private offering memorandum.

Important disclosures: Disclosures: This content (the "Insights Page") is provided by Weiss Multi-Strategy Advisers LLC ("Weiss"). The views expressed on the Insights Page are for informational purposes only and are subject to change without notice. Information on the Insights Page has been developed internally and is based on market conditions as of the date of the original post on the Insights Page from sources believed to be reliable. Nothing on the Insights Page should be construed as investment, legal, tax, or other advice and should not be viewed as a recommendation to buy or sell any security or adopt any investment strategy. Past performance is no guarantee of future results. Please consult your own advisers regarding business, legal, tax, or other matters concerning investments. Weiss has no control over information at any external site hyperlinked on the Insights Page. Weiss makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and has included hyperlinks only as a convenience. The inclusion of any external hyperlink does not imply any endorsement or ongoing monitoring by Weiss of any hyperlinked site. Investing in securities is speculative and involves substantial risk of loss.