Investing is not that complex. Investors deploy capital in search of returns. While the choices are almost infinite, most alternatives fall into two choices: you can lend money (bonds) or can you can buy something (equities). When you look at financial markets in that context, the recent strength of the stock market is not that surprising. …
Continue reading “Want To Know Why The Stock Market Is At An All-Time High? Look At Bonds”
Legendary steaks, world-class wine, championship polo and tango, scenic Patagonia and, of course, Lionel Messi: Argentina is blessed with the best of the best. Why does a country like Argentina continually experience one economic crisis after another? Click here to read the entire article on Forbes
The next battle in the ongoing trade war between China and the US could be over rare earth metals: 17 elements critical to US manufacturing that are under near monopolistic control by China.
The two countries have roughly the same population, similar average unemployment rates and current GDP growth rates that are among the highest in the world. Yet China’s economy is almost five times larger than India’s. Click here to read the entire article on Forbes
In a world with $7 trillion of government bonds that yield negative interest rates, one question still puzzles investors: who in their right mind is buying them? Why don’t investors buy higher-yielding US government bonds instead? The answer lies in the understanding of the mysterious “basis swap.” Please click here to read the entire article …
If you won the $1.6 billion Mega Millions lottery, how would you invest your instant wealth? Click here to read the entire article on Forbes
Volatility in the equity market has picked up again. Here is a brief summary of some of the major developments. It includes chaerts and commnentary on the following: Investment Factor Returns Factor Volatility Minimum Volatility Factor Low Vol vs. Min Vol: Performance Low Vol vs. Min Vol: Allocations Sector Returns Sector Valuations Global Equities Performance Global …
The performance of global financial markets is diverging. What does this tell us about the health of the global economy? Is the second longest economic expansion in the last 150 years about to come to an end? Click here to read the entire article on Forbes
1. Italian BTPs BTPs gained on the back of comments made by Finance Minister Giovanni Tria. He pledged fiscal prudence with respect to the Italian budget. Lower BTP yields, especially in the front end of the yield curve, take the stress of the banking community and European financial markets in general. 2. Crypto Meltdown The year-to-date change in …
1. EM FX The weakness in EM seems to be moving from idiosyncratic situations to contagion. The huge currency losses in some EM markets are not without historical precedent. Losses in 2008 and 2015 exceeded 15%. Bottom line: it feels bad, but it could easily get worse. Why it Matters Emerging markets had another rough day …
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