Market Note
Inflation Everywhere!
Risk appetite resilience stands as a remarkable testament to the overabundance of liquidity currently swirling through the global economy.
Raging inflation, a new fed chair, a goal seeking US presidential administration, what could go wrong?
Here we are in the mid-year malaise where spring’s budding market trends start to consolidate and fresh narratives take hold.
There is no denying that inflation is everywhere and the K-shaped economy remains firmly on display during Knicks games as midtown burns while the global elite sit in gilded courtside seats.
The ultimate resolution will be a US hiking cycle that could possibly start post mid-terms. Just a few months ago market pundits could argue that the current euphoric bull market was different than 1999 because the Fed was easing, but here we are with the inflation genie out of the bottle, the toothpaste is out of the tube, and the only action to cap it will be an engineered tightening. Trade accordingly.
Global Markets & Economic Data
- US: Inflation figures hit multi-year highs while consumer sentiment readings ticked up in June but remained below pre-March levels.
- Switzerland/UK/EU: Swiss FX reserves remain near multi-year low levels. UK April GDP figures were flat/negative, in line with forecasts. In an effort to stem inflationary pressures, the ECB followed through on its plan to increase interest rates by 25bps, the first hike since 2023.
- China/Japan: Chinese Balance of Trade figures showed higher exports than expected, but imports surprised to the upside too. Japanese Q1 finalized GDP growth was 1.8%, trending higher q/q.
Index Returns Summary
| Asset Class | MTD | YTD |
|---|---|---|
| MSCI World | -2.20% | 8.51% |
| MSCI Asia Pacific | -1.18% | 13.20% |
| MSCI Europe | -1.35% | 5.95% |
| Bloomberg Barclays Global Aggregate Index | -0.89% | -0.38% |
| Bloomberg Commodities Index | -1.84% | 21.43% |
| HFRX Global | -0.47% | 3.67% |
| HFRX Macro/CTA | -1.07% | 5.58% |
| HFRX Equity Hedge | -0.86% | 5.99% |
*Index data as of June 5, 2026
Disclaimer: This material has been prepared by MASTERPIECE ADVISORS for informational purposes only and should not be construed as financial advice. Investments in hedge funds are speculative and involve a high degree of risk. This material is confidential and may not be disclosed without the express written approval of MASTERPIECE ADVISORS.