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Latin America’s Pandemic Election Cycle
Featured Author: Meagan Nace
Meagan Nace is an analyst on the Artisan Partners Sustainable Emerging Markets Team.
In addition to the public health tragedy, the pandemic has been a source of significant economic and fiscal setbacks for Latin America—at a time when social discontent over inequality was already beginning to surface. While we see some signs of economic improvement, the pandemic led to drops in much-needed investment—foreign, corporate and government—while fiscal conditions have become further strained. Now, a series of elections will reveal what leaders and policies each country feels will help it move forward—with potentially significant implications for the region’s financial markets.
Laser-Eyed Focus on Value
This recent ransomware attack on America’s energy infrastructure has me concerned. Imagine the chaos if the clandestine cyberweapons market shutters America’s electrical power grid. I mean, how would Americans access their trillion dollars of crypto?!? How will I know if my friends have laser-eyed avatars and will get offended when I don’t accept bitcoin as barter for my backup generator?
Supply/Demand: Revenge Spending in Commodities
Supply/Demand is a semi-regular feature of the Artisan Canvas rounding up interesting and quirky subjects from across the Internet with a focus on economic and business trends. A good rule of thumb among the Artisan Canvas editorial staff is “never reason from a price change.” With that in mind, our latest edition of Supply/Demand.
The price tags for (seemingly) everything have gone up, from electronics to cars to food—partly because commodities prices have also jumped. Some are related to pandemic recovery, particularly in China. For others, geopolitics are at play—again, also frequently related to China. Here are the commodities trends that caught our collective eye:
Inflation: Just Passing Through, or Here to Stay?
As the US economy fully reopens and folks are able to return to their traditional spending patterns (to what degree only time will tell), price increases for a number of goods and services should not be a surprise. Indeed, many have seen it coming for a while.
High Yield’s High-Quality Overhaul
While most segments of fixed income offer paltry yields with growing risk levels—either credit or interest rate—and valuations that are back to pre-pandemic levels, the high yield market remains one of the few areas that still provides positive real yields while benefiting from a credit quality mix that is at all-time highs.