July 2021
back to all monthly reportsExecutive Summary
The global credit cycle has peaked and there are many signs that global growth is peaking and will decelerate in 2H 2021. Liquidity is also deteriorating, with Global M2 money supply growth (dollar terms) peaking at +22% y/y in March. At the same time, we believe longer term inflation in the US (5Y5Y) has peaked. We maintain our defensive bias in the portfolio and continue to move forward with caution. However, we are confident that the rising volatility and coming weakness in the markets in 2H 2021 will provide opportunities to reload the portfolio with quality stocks. The Technology of the Future Fund had a +3.7% return in June, outperforming the benchmark MSCI World Index (USD), which had a return of +1.4% .
The global credit cycle has peaked and there are many signs that global growth is peaking and will decelerate in 2H 2021. Liquidity is also deteriorating, with Global M2 money supply growth (dollar terms) peaking at +22% y/y in March. At the same time, we believe longer term inflation in the US (5Y5Y) has peaked. We maintain our defensive bias in the portfolio and continue to move forward with caution. However, we are confident that the rising volatility and coming weakness in the markets in 2H 2021 will provide opportunities to reload the portfolio with quality stocks. The Technology of the Future Fund had a +3.7% return in June, outperforming the benchmark MSCI World Index (USD), which had a return of +1.4% .