Portfolio Update: July 2023!

Friends, from this month, I have decided to have a dedicated post on the “Portfolio” every month on a Saturday as our ultimate aim remains to make money and beat our benchmark via analyzing the distinct moving parts of the global macro puzzle.

In my honest opinion (IMHO), the highlight of the last month has been the weaker dollar (DXY), which is now at the touching distance of 99. A weaker greenback changes the dynamic across assets as it pumps commodities, Gold., tech and EM stocks.

While you would be wondering if a rally in JPY, HY, Gold, and USTs is kinda a risk-off rally, it seems that markets are more and more pricing in the “perfect” soft landing of the world’s largest economy.

PS: An increase in rate differential, post a soft CPI print, between ECB, BoE and Fed is partially responsible for dollar weakness. Furthermore, markets are pricing in a YCC tweak in the 28th July BoJ me…