Latest news:

'Taper Tantrum'

Jul 1, 2021

Redacción Mapfre

Market narrative focused massively on the Fed’s statement last week. But the sense of a new “taper tantrum” faded away quickly, and now, investors are factoring in other issues. In particular, the ability to forecast a reliable trajectory for inflation is null, and US growth is likely to soften in H2. And over all, asset values depend more on growth and inflation than on central banks.

Actually, a gradual return to a more neutral monetary policy would be much healthier than the current situation.

The above does not mean that a taper is out of the cards. On the contrary, it is likely in coming months. Hence, it might be the case that investors are assuming a smooth transition towards a new policy or inflation regime.

This is good news, should I be true, thus keeping investors’ appetite high. But watch out for disappointments either side.

Alberto Matellán, chief economist at MAPFRE Inversión

High volatility in stock markets: why it happens and how to act

In recent weeks, international markets have faced their most challenging period since 2020. In a situation marked by surging volatility, emotions like fear take center stage in the minds of many investors, and market movements shift from linear to exponential. Such situations, although not frequent, do tend to recur periodically, and it’s important not to get swept up in the negative atmosphere or act impulsively with a short-term mindset, as the experts at MAPFRE remind us.

The dollar's hegemony under scrutiny

The US dollar’s role as the world’s reserve currency, historically underpinned by institutional credibility, financial depth, and trade dominance, is now facing mounting structural challenges that go beyond short-term economic fluctuations.

The tariff war shakes the global economy and casts doubt on U.S. debt

The tariffs are a problem that’s marking a major shift in the economic relationships we've built and developed over the past few decades. The U.S. President is using them as a tool to bring manufacturing back home and, in turn, boost government revenue through both direct and indirect taxation. But the ends don't always justify the means, and in pursuing these goals, the U.S. is now facing slower economic growth and rising inflation.