A different Kind of Hunter
With the Federal Reserve widely expected to deliver a rate cut at its upcoming FOMC meeting next week, US bond markets have experienced a period of positive performance. The US Treasury curve has been a standout performer compared to other major developed markets so far this year. For example, the US 10-year Treasury yield has rallied (54bps), while its counterparts have seen less favourable movements; the UK 10-year is ~6bps weaker and Bunds are off ~ 33bps, at time of writing.
While some volatility is likely ahead of the FOMC announcement, the current environment presents a compelling case for investors to consider fixed income. Given the US is witnessing a slowing economy and non-accelerating inflation, undervalued sovereign and quasi-sovereign bonds remain compelling. This is a space where our value-hunting EPIC fixed income team is actively seeking opportunities.
On the subject of being an opportunistic hunter, we have a different perspective from a colleague living in Scotland. Being close to the sea can be an ideal place to WFH. However, it is not without danger.
Sky News reported that in June this year, Tory MSP Rachael Hamilton called for a ‘nationwide seagull summit’ with Scots left ‘scared, attacked, and traumatised’.
With children pursued in Eyemouth, she noted that ‘aggressive seagull behaviour continues to cause a real concern amongst businesses, amongst tourists, amongst everybody that has anything to do along the harbour’. Mr Douglas Ross, The Highlands and Islands MSP, noted constituents were worried about leaving their homes for fear of being ‘divebombed’. Solutions are not easy, with NatureScot suggesting folk should protect themselves with umbrellas and dogs. Mr Ross was not impressed.
Last word to Jim Fairlie, Agriculture Minister, who warned that the issue of gulls was ‘deadly serious’, and aware of the flaws of a conflicted licensing system, urged people to ‘stop feeding the birds’
So, from Falmouth to Fraserburgh, while enjoying a blustery walk this weekend by the sea, hang onto your fish and chips. You are being watched, as Melanie Daniels found out in the Hitchcock classic!
If you would like to receive The Daily Update to your inbox, please email markets@epicip.com or click the link below.