Adaptive Markets Hypothesis and Market Outlook - Isaac Fang CFA

Adaptive Markets Hypothesis and Market Outlook

Adaptive Markets Hypothesis acknowledges dynamic markets which Isaac fully subscribes to. Some background to its implications, coupled with varied approaches to the market, provide context that drives Isaac’s market outlook, views and opinions.

Disclaimer

This market outlook is not to be misconstrued as a recommendation to act whatsoever. There is a moral hazard in protecting people from the consequences of their actions. Kindly take responsibility for your own actions because nobody is holding a knife against you and making you do something against your wishes.

Attribution

Material has been extracted from all over including Bloomberg, Reuters, TradingView and other financial websites. The choice selection of information has been assembled in Mosiac fashion.

Isaac's Market Outlook | Views | Opinions

Last week we had FED chair Powell agreeable to slower rate hikes. The NFP numbers were better than expected.

Europe is expected to go into a mild recession based on trajectory.

There are definitely capital flows into China on bets on a path to re-opening post covid.

Services activity, which has been an area of the economy flagged by the Fed as a key contributor to inflation, rose by more than expected in November, stoking fresh concerns about more hawkish Fed monetary policy measures.

The Fed is expected to slow the pace of interest rates at its meeting next week, but recent data including the red-hot jobs report on Friday shows that they are likely have to hold rates at a high level (sufficiently restrictive) for quite a while to get inflation back down to the 2% target.

Despite the weaker start to the week for stocks, some on Wall Street believe that the broader market may have bottomed, and are likely to continue to search for direction in the months ahead.

Make your own play.

Adaptive Markets Hypothesis and Portfolio Management

Adaptive Markets Hypothesis Asset Class Returns by year. Image credit to Novel Investor.
Image Credit to Novel Investor. Clearly Different Periods favor Different Asset Classes and Approaches.
Portfolio Management Process according to CFA institute
Observe 2 loops within the Investment Portfolio Management Process according to the CFA Institute. Upper loop involves the investor nuances. Bottom loop involves the market. They are to be combined.

Approaches and Manner of Expression

Manner of Expressing Investment View
Adaptive Markets Hypothesis Different Styles and Approaches to Investment

Book a Discovery Session with Isaac Fang CFA

%d bloggers like this: