3Q2021 Review, As we close the third quarter of 2021 the party rolls on and the heavy-handed knock at the door that we all expect has not been heard above the loud chatter although the two and a half point dip in the 30-year Treasury bond and the equity dump rattled the knob In spite of this equity markets continue to sleepwalk through this liquidity fueled asset bubble (S&P 500 at 2582X as we write Credit…

Introduction, The third quarter of 2022 has been one of persistent anxiety for investors a global community that traditionally seeks and rewards stability Decades-old norms for sovereign borders political rectitude price-efficient energy markets and politically modest central bank behavior have been overturned Regular readers of this Brief will have been prepared for market volatility in 3Q22 as markets strain…

Currency for return   |   Latest MCM viewpoints   |   Contact us   |   Explore currency solutions, US dollar outperforms G10 currencies, US dollar strengthened broadly over Q3 outperforming the G10 currencies save a stronger Norwegian Krone The Fed delivered their one and only hike in the beginning of the quarter raising rates by 25bps to 55% CPI numbers were as expected with the latest readings for headline at 06% MoM and core at 03% MoM With the market anticipating another 25bps hike by year-end soft landing hopes for the US…, EUR |,  Euro generally underperformed this quarter outperforming only the weaker Australian dollar Yen and Sterling in Q3 The ECB delivered two 25bps hikes in July and September moving rates from 4% to 45% making good on Lagarde’s Hawkish mid-quarter speech at Jackson Hole Eurozone inflation numbers continued to fall with September’s headline number falling to 43% YoY from 52% for August , GBP |,  Sterling was broadly weaker in Q3 the largest underperformer in the G10 over the quarter September was particularly damaging despite the BOE delivering a 25bps hike the month before while pausing during the most recent month Weakening CPI numbers over the quarter including an especially large drop in the core reading to 62% YoY from 69% pushed the currency lower , JPY |,  Yen was a large underperformer in Q3 trailing all other G10 currencies other than the weak Sterling over the quarter While inflation printed at 32% YoY vs 3% consensus by quarter-end the BOJ held rates steady as Governor Ueda reiterated their dovish stance by saying that they needed to be patient With a weakening currency the MoF / BOJ followed its theme of threatening intervention to prevent…, AUD |,  Australian dollar found general weakness over the quarter gaining only against the weaker Sterling and Yen in the G10 While the RBA did not deliver on an expected hike mid-quarter forward guidance was kept the same implying that some further tightening may be needed While August inflation jumped to 52% YoY and employment showed resilience with a change of 649K vs 25K consensus retail sales…, CAD |,  Canadian dollar landed in the middle of the G10 over the quarter as a strong September helped support CAD The BOC started July by hiking 25bps to 5% while stating that the end of their tightening cycle could be near While CPI in June dropped the next two readings rebounded registering 40% YoY in August along with better-than-expected net change in employment at 399K and a rise in hourly wages by…, CHF |,  Swiss franc finished near the middle of the G10 over the quarter as strength early in Q3 reversed to weakness to finish out the quarter The SNB unexpectedly kept rates unchanged in September noting that recent tightening has helped counter remaining inflationary pressures Data prints for August were generally better with CPI steady at 16% YoY unemployment also steady at 21% and retail sales…, EM |, MSCI EM Currency Index showed strength early in the quarter before turning down and finishing -044% in Q3 as stronger US dollar kept emerging market currencies under pressure Brazil continued to cut rates in August and September while economists forecast further rate cuts into the end of the year While the PBOC has been defending CNY in China worsening balance of payments pressured the Renminbi…, FX Rate, Change 3M %, Change YTD %, EUR-USD 105875 -296% -080% GBP-USD 122055 -400% 147% USD-JPY 149225 -314% -1158% AUD-USD 06454 -304% -483% USD-CAD 1352 -213% 022% USD-CHF 09148 -220% 114% Source WM/Reuters   Currency for return Currency Alpha Mesirow Currency Management’s (MCM Extended Markets Currency Alpha Emerging Markets Currency Alpha and Systematic Macro strategies all had positive third quarter performance MCM’s Asian…, Barclays Aggregate Global Bond Index, MSCI ACWI Index, S&P 500 Index, Consumer Price Index, Extended Markets Currency Alpha 006 004 004 -004 Asian Markets Currency Alpha 000 -019 003 007 Emerging Markets Currency Alpha 003 -015 001 -013 Systematic Macro 000 -007 000 -004 Source Mesirow Bloomberg US Bureau of Labor Statistics 2 As the USD gained strength over Q3 our long US dollar positions against the New Taiwan dollar the Chilean peso and Chinese yuan contributed the most to positive…, Explore currency solutions, Passive and Dynamic Risk Management,       Customized solutions to manage unrewarded currency risk in international portfolios Learn more, Currency for Return,       Strategies that aim to profit from short and medium-term moves in the currency market  Learn more, Fiduciary FX,       Trading solution for asset managers and owners with focus on reducing transaction costs improving transparency and enhancing efficiency Learn more 1 The GVI is an internal proprietary model utilizing one month at-the-money (ATM volatility for G10 currencies including crosses plus BIS liquidity report weightings 2 The above performance information is supplemental Performance of the Extended…

The beginning of each year brings hope as we consider starting something new or making improvements to something we have started  Many of us reflect on what should be different and commit to making a change often referred to as a “New Year’s resolution”  Making a New Year’s resolution can be positive if done correctly as it requires us to reflect and analyze our personal position as well as set…, According to US New and World Report 80% of New Year’s resolutions fail by mid-February 1   Although some failures have fewer consequences than others the inability to maintain financial goals especially in the current environment can have negative long-term implications  As we go into the new year it is important for us to revisit our resolutions and make adjustments where necessary so we can…, Common financial resolutions , I am going to have more control over my money  , Tip 1 , This broad statement often results in failure because it expresses a desire but does not clearly explain how to meet goals and objectives that lead to success  It can be compared to intentions such as losing weight or quitting smoking without a clearly defined strategy to implement toward these goals  To achieve good results a defined plan to change behavior is needed  Developing a budget is the…, Tip  2 , A benefit of the pandemic environment is that it forced individuals to recognize how they spend money  Hopefully this realization will allow households to find a healthier balance between spending and saving going forward However aggressive spending reductions may be difficult to adjust to and cause individuals to feel defeated  Changes to your budget should be realistic and sustainable  A budget…, Tip 3,  Reducing credit card debt can be challenging especially if you do not know where to start  Reducing and eliminating debt is often associated with lowering stress and improving health conditions therefore this is a resolution you should work hard to keep  Monthly credit card payments should be made on time to eliminate late fees and penalties which add 10-15% to the bill 3   Also you should…, Tip 4,   Saving for retirement is now a requirement not an option  Less than 25% of employers offer defined benefit pension plans thereby leaving more of the financial risk of retirement on employees  However many employers offer retirement plans such as a 401k 403b or 457 to allow employees to save on a tax-deferred basis  In addition many employers provide matching funds on a percentage of the money…, Stay on track, If you are falling behind with your New Year’s financial resolutions now is a good time to reset and refocus  Remind yourself why you set your goals and what outcomes are important  If you are struggling to change your habits revisit your strategy to make sure you have clear action steps that can lead to success and someone to hold you accountable for executing them  If you do not consulting a…, Published January 2025, 1  https//healthusnewscom/health-news/blogs/eat-run/articles/2015-12-29/why-80-percent-of-new-years-resolutions-fail   2  http//acrwebsiteorg/volumes/1023767/volumes/v45/NA-45  and  https//wwwfa-magcom/news/should-spouses-pool-their-money-or-not-31741html 3  https//moneyusnewscom/money/personal-finance/saving-and-budgeting/slideshows/financial-new-years-resolutionsslide=3  

Financial markets ended 2023 with a robust fourth quarter as investors expressed enthusiasm over easing inflation data and the Federal Reserve’s indication of a potential end to its two-year interest rate hiking cycle, The Federal Reserve began raising rates in March 2022 to combat inflation hiking its key Federal Funds rate from 0% to a range of 525-550% However the Fed has left this range unchanged since its July 2023 meeting During the same time the Consumer Price Index (CPI a widely followed measure of inflation trended down from a high of a 91% annual rate in June of 2022 to 31% most recently Following…, Equities, The S&P 500 Index rallied 117% in the fourth quarter as every sector besides energy posted strong gains Financials rebounded on the prospects of a soft economic landing while the technology sector continued its year-long upward trajectory boosted by excitement for the prospects of artificial intelligence While large-capitalization stocks led the market for most of the year mid- and small-…, Fixed Income, Bonds staged an impressive fourth quarter comeback as interest rates declined The 10-year Treasury rate peaked at just below 50% in October before falling to end the quarter and year at 38% That quick plunge led to the Bloomberg US Aggregate Bond Index returning 68% for the quarter helping to turn the index positive for the full year  Despite the fourth-quarter rally that index has still lost…, Commodities, The Bloomberg Commodity Index fell 46% during the quarter reflecting one of the few negative asset classes during the quarter Oil prices and other commodity prices fell although gold prices performed admirably returning 114% during the quarter    Important Information The Bloomberg Commodity Index is a broadly diversified commodity price index distributed by Bloomberg Index Services Limited  The…