This chart book examines historical currency momentum, valuation, and fundamentals in nine key currencies—US dollar (USD), British pound (GBP), euro (EUR), Swiss franc (CHF), Japanese yen (JPY), Australian dollar (AUD), New Zealand dollar (NZD), Canadian dollar (CAD), and Singapore dollar (SGD)—to help investors understand how these currencies behave against other major currencies.
Over the past two weeks, central banks in the United States, United Kingdom, euro area, and Japan have all held monetary policy meetings. The communications following these meetings retained a hawkish bias, suggesting further policy tightening may be necessary—except for the Bank of Japan—however, additional interest rate hikes will likely be much less frequent for the remainder of this cycle. Despite this reality, we do not think major central banks will be quick to cut interest rates next year.
Equity and bond prices stumbled last week as major central banks signaled an intention to keep rates higher for longer than previously expected.
Investor interest in co-investing has grown in recent years, given the benefits for both general partners and limited partners. We answer six frequently asked questions about this strategic allocation.
No. Although GDP revisions showing that the UK economy recovered more quickly and strongly from the COVID-19 period than was initially thought are welcome, the country faces headwinds to growth in the coming quarters. We continue to recommend holding UK equities at benchmark weights.
No, we do not think it is likely that Japanese equities can meaningfully outperform in the near term, given growing headwinds from the slowing global manufacturing cycle, possible monetary tightening, and potential Japanese yen strength.
The U.S. Securities and Exchange Commission adopted the most extensive reforms for the private investment industry since the Dodd-Frank Act of 2010. The reforms include many noteworthy aspects that we, and the industry, are still reviewing closely.
Risk assets enjoyed mostly positive returns in fiscal year 2023. Equities rebounded as fears over the severity of a possible recession moderated. Emerging markets equities lagged developed markets as the pace of reopening in China disappointed. Bond performance improved as credit assets posted positive returns but developed markets sovereign bonds struggled. Real assets suffered due to higher interest rates and slowing demand.
No, we continue to believe investors should hold US Treasuries in line with policy allocations. While the recent decision by Fitch Ratings to downgrade the sovereign credit rating of the United States added upward pressure on Treasury yields, we do not expect it will have a lasting impact.
Yesterday, US President Biden issued an Executive Order (EO) limiting US investments in China in three technology sectors—semiconductors and microelectronics, certain artificial intelligence systems, and quantum information technologies—in 2024 and beyond.
Highlights our latest portfolio advice and reviews notable data for over 50 asset classes/sub-strategies, with key charts and views from our asset class specialists. Read a short introduction →
Monthly review of market action with the key charts for the month and a snapshot of index performance in major currencies
CA’s house view and advice, written by our Chief Investment Strategist, Celia Dallas
Summarizes asset allocation and total investment performance for over 400 of Cambridge Associates’ endowment and foundation clients
Insights from the leaders of our hedge fund research on what drove performance in the quarter
Presents quarterly representative long-only and hedge fund manager performance.
Analysis of the performance shown in our private investment benchmarks