Foreign Investors Were Not "TICked" off!

Foreign investors rushed to buy U.S. assets in May

Highlights

• Foreign investors rushed to buy U.S. assets in May

• Momentum-driven stock rally looks resilient but over-stretched

• Lagging low-cost inventory was key to June inflation numbers

• The end to the BoC’s easing cycle is not that certain yet

Key Takeaways

• Assets Decoupling from Economic News: We kick off the session and close the week with the momentum-based rally intact. Japan is teetering on the brink of recession and facing a future of political instability following the upcoming upper-house parliamentary election, while China is plagued with deflationary overcapacity, but asset prices globally are not reflective of true economic fundamentals. Investors have consistently treated “less bad news” as “good news.”