Key takeaways
- Calculate an investment’s alpha and beta
- Calculate an investment’s Sharpe and Sortino ratios
- Calculate an investment’s information ratio
- Markets are pricing in 100 bps of US rate cuts by year end. With only 3 meetings to go, that’s quite a stretch.
- The next set of US employment figures, released 6 September, will be key.
- There is scope for disappointment, given how much is priced in, but the trend is clearly set for lower US rates.
- Just 40 bps of cuts, by year end, are priced in for the UK.
- Sterling has been the strongest major currency so far this year and this should feed through to lower prices for imported goods.
- For Europe, markets are pricing in much the same profile, for cuts, as in the UK.
