The price action in commodities, US Treasuries and the TIPS spread suggest that markets are projecting diminished tail risks and a “more or less” synchronised global economic recovery in the second half of the year.
The Tantallon India Fund closed 6.47% higher in February despite significant intra-month volatility as the markets internalised the risk of sharply higher US Treasury yields weighing on discount rates and terminal “values” for the crowded pandemic “winners” in e-commerce, FinTech, BioTech, renewable energy, e-mobility, e-gaming and cryptocurrencies.
Buffeted by increasingly high-decibel market action amid rising inflation/real yield expectations, our views stand.
