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WisdomTree Insights
Markets have sold off sharply in November, but the data doesn’t point to a meaningful structural shift. AI, macro, crypto, and commodities each show more sentiment-driven moves rather than fundamental deterioration. Our team breaks down where risks are real, and where markets may have mispriced fear.
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Markets have sold off sharply in November, but the data doesn’t point to a meaningful structural shift. AI, macro, crypto, and commodities each show more sentiment-driven moves rather than fundamental deterioration. Our team breaks down where risks are real, and where markets may have mispriced fear.
Read the article
With the U.S. election approaching and candidates vying for undecided votes, the impact of policies on mounting government debt is back in focus. Investors like Paul Tudor Jones are positioning for long-term inflation as U.S. debt continues to grow, advocating for assets like gold and bitcoin to hedge against currency devaluation and fiscal irresponsibility.
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The Bank of Japan (BOJ) surprised markets last week by allowing greater flexibility in the Yield Curve Control (YCC) framework. There have been two driving forces – the value of the Japanese Yen and inflation. They are of course linked as a weaker Yen has been driving inflation higher. The BOJ's goal has been to not only get inflation to 2%, but ensure it can settle stably above that target. While the BOJ has taken a step towards normalising policy it is still some way off its attachment to ultra-loose monetary policy.
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It’s an exciting time for Japanese equities. Warren Buffett is turning his attention back to Japan. In addition to Buffett’s vote of confidence in Japanese equities, there are a number of other factors supporting the view that Japan could have an edge versus global equities. The Tokyo Stock Exchange is doubling down on corporate governance which should benefit shareholders.
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Lower Indian supply coupled with weaker than expected output from Thailand, (at the second and third largest sugar exporters respectively) continue to provide a tailwind for sugar prices. While Brazil’s harvest in the coming months is expected to be strong, logistical hurdles owing to higher exports of soybean and corn could restrict supplies over the coming months thereby supporting sugar prices higher.
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OPEC+ once again caught markets off-guard by announcing further voluntary supply cuts, contrary to market expectations. OPEC+ has been markedly dovish on oil demand for some time relative to other forecasters, setting the scene for a surprise intervention. The combination of a slower rebound in China alongside weaker global growth expectations stemming from the banking turmoil, led OPEC+ to adjust supply to bolster crude oil prices. While supply cuts remain price supportive over the short term, they are not enough to drive prices steadily higher amidst the macro uncertainty.
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