Archive

July 07, 2025
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HEM: Rolling Resilience

  • Activity remains resilient, and labour markets are tight
  • Underlying price and wage inflation mostly track >2%
  • Doves assume this regime breaks, but it isn’t happening
  • Cuts can keep rolling later and may never materialise
  • Rate hikes are more historically usual after pausing
June 02, 2025
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HEM: Better Never Than Late

  • Companies are smoothing out volatile trade policies
  • Activity remains strong and labour markets are tight
  • Underlying price and wage inflation is still too high
  • Markets expect cuts to resume later, contrary to history
  • The risk of rate hikes in 2026 is widely underappreciated
May 06, 2025
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HEM: Dovish Prices Deranged

  • Activity remains surprisingly strong, defying dovish fears
  • Labour markets are tight, and manufacturing is stable
  • Underlying price and wage inflation is still too high
  • Rates underrepresent the rebounding risk sentiment
  • BoE cut pricing ahead of the Fed looks the most deranged
March 31, 2025
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HEM: Fear of Fear Itself

  • Fear of tariffs and DOGE is depressing vibes in US surveys
  • Resilient labour markets suggest dovish fear is overblown
  • Underlying price and wage inflation remains too high
  • Paused easing cycles do not resume without recessions
  • Reversing unnecessary easing remains more likely in 2026

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