Macro Insights Weekly - Complacent Markets

29 January 2024


  • Strong real GDP growth numbers and soft inflation figures have set the US markets ablaze. We welcome market rallies, but are wary of complacency among market participants.
  • US stock market has been setting records and volatility markers have collapsed.
  • Credit spreads have compressed to nearly all-time lows.
  • US market cheer however has not had a salutary impact worldwide.
  • Non-AI chip demand softness and risk of delays in Fed cuts are weighing in.
  • Near term market risks include oil prices and resiliency of the US labour market.