The financial markets have maintained their recent upward run, which has been fueled by a stream of seemingly positive developments that have boosted equities and high-yield bonds. However, we caution against the current wave of optimism, which could face a sharp reversal if the widely anticipated gentle economic deceleration fails to materialise.

Last week witnessed a notable boost to investor sentiments as the 0.1% outperformance of U.S. inflation data versus expectations prompted a discernible uptick in risk appetites. The impact resonated through the global bond markets, with a significant decline in yields—U.S. 10-year notes receded by 20 basis points (bps), paralleled by a steeper 30 bps reduction in New Zealand. Equities, too, ended the week on a high, with markets generally advancing 2-4%. European and Japanese indices, in particular, benefited, eclipsing gains in the U.S. and capitalising on a concurrently retreating U.S. dollar.

Investors can now participate in the fractional ownership of a specially curated art portfolio targeting returns akin to venture capital and private equity investments through the Artory/Winston art fund. SDAX, Singapore’s Digital Asset Exchange, has partnered with Artory/Winston for the inaugural entry of their art fund into Asia’s private markets, with the aim of democratising art investment and extending accessibility to institutional-quality art investment portfolios to a broader qualified investor base.