The Monthly Review: September

"The Monthly Review - September 2024" edited by Michele De Michelis, Chief Investment Officer of Frame Asset Management, primarily focuses on recent financial market dynamics, particularly the surprising rise of the S&P 500 index. This rally, which has led to over 40% growth since October 2023, occurred in a complex and uncertain geopolitical context. Despite economic data and political tensions, the stock market has proven extremely resilient. The author also highlights the difference between the behavior of the stock and bond markets, with the latter reacting more quickly to economic and geopolitical news. An example is the yield on the U.S. 10-year Treasury, which returned above 4% following a pullback. Lastly, the possible impact of Chinese economic stimulus policies on commodity prices and, consequently, on global inflation is discussed. The importance of monitoring the Chinese market, especially for Western investors, is emphasized due to the opportunities linked to economic support policies in China.