📑 Research Notes for 2022-05-23
This week, we look at a dearth of market liquidity, India's ban on wheat exports, Sri Lanka's default, and the possibility of another Plaza Accord to weaken the U.S. dollar.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
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Wall Street Warns Market Liquidity Is Getting as Bad as 2020.
Suspicious minds on Wall Street can be forgiven for seeing all the hallmarks of an illiquid bear-market trap in the Tuesday stock rebound. In recent months trading conditions in equities and bonds have gotten worse as money managers struggle to buy and sell in size without moving prices, with echoes of the 2020 pandemic disruption.
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Wheat Soars as India Restricts Exports.
Wheat jumped by the exchange limit after India’s move to restrict exports, exposing just how tight global supplies are.
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Sri Lanka Default on Foreign Debt.
Economic crisis deepens as the nation misses interest payments on two international sovereign bonds.
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Surging Dollar Stirs Markets Buzz of a 1980s-Style Plaza Accord.
The dollar’s skyrocketing rise has some contemplating a rare, if not unthinkable, action: major nations agreeing to manipulate the US currency until it falls. It has happened before -- most notably with 1985’s Plaza Accord -- which took place against a backdrop of soaring inflation, an aggressive Federal Reserve rate-hike campaign and surging dollar.Â
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Last Week’s Market Performance Heatmap
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Curated by Joseph Lu, CFA®
Joseph is the founder and managing director of Conscious Capital Advisors and a CFA® Charterholder.
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