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By Eric Fine, Portfolio Manager, VanEck
China cash squeeze continues. Chinese authorities remain focused on risks around speculation, and are continuing their liquidity crunch. Overnight interbank borrowing rose 29bp to 3.34% today, a level last seen in March 2016. This rate was 0.6% at the beginning of January, and it is now higher than the yield of Chinese 10-year bonds. Nonetheless, we see this as mature and confident policy, employing a variety of tailored tools. Overall market calm (other than the stock-that-shall-not-be-named) seems to validate that angle. Nonetheless, this remains a trend to watch.
Turkey’s December trade balance better than expected. Turkey’s December trade deficit came in at $4.53bn, a smidgen better than the expected $4.60bn, and an improvement from November’s $5.03bn. This could be interpreted as fruit borne by the central bank’s hawkish policy U-turn, and the Turkish lira seemed to agree; the lira continues to trade well and is among the stro
Investors can minimize risk by buying communications-focused ETFs and index funds.
In 2020, communications became more important than ever. Entering an era of remote work and play, people turned to communications technology of all kinds. Internet and cell phone service, video conferencing, video games, and streaming services were the lifeline that allowed us to muddle through - even thrive - in a challenging year.
But even before the coronavirus, communications was a key area to invest in, populated by some of the biggest names in the corporate world, and dealing with services used by millions every day.
The communication services sector represents about 10% of the S&P 500. It s so important for keeping everyday life running that the U.S. government classifies it as critical infrastructure.