14-Mar-2018
Perspectives March Publication

Welcome to the 13th edition of Perspectives. 
 
After 18 months of extraordinary calm on the markets, volatility returned these past few weeks. The primary culprit has been an inflation fear. In the first section, we explain why the correlation between equities and bonds is flipping. This has important implications for portfolio construction as investors need to look for new diversifiers. In light of this, we look at Copper, as the red metal historically performed well in the context of rising inflation. Staying with commodities, we highlight why we believe US shale rise is overshadowing some of the strong factors that play in favor of Crude Oil.

Moving to the MENA region, the Special Focus of the month is on the Saudi Aramco IPO. We attempt to answer some key questions surrounding what is expected to be the largest public offering ever. Still in Saudi, we revisit our bull case on the banking sector. The last section is about Lebanon, a country which is facing some daunting challenges.
 
We hope you will enjoy this issue.

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