The Geopolitics of Market Volatility: Spillover Effects and Macro Fundamentals
The act of counterbalancing and possibly containing China has multiple faces. Shinzo Abe, the Prime Minister of Japan met with Vladimir Putin of Russia last weekend in an effort to sway some support regarding the dispute between China and Japan over the Senkaku a.k.a....
Monthly Barometer’s Forward-Looking Monthly Review: An Interdisciplinary View of our Complex Global Economy
April 2016 Yet again the IMF global economic for 2016 have been revised downwards by 0.2 percentage points - to 3.2%. Global growth remains weak and uneven, beset by financial, geopolitical and political risks. The best-performing economies, like the US, are...
Weekly Market Update
Market Action The past week started positively for risk assets but turned sour on Thursday and Friday with markets reverting to their trends for the first six weeks of the year. Some disappointing earnings reports from leading names, including Apple, and chatter from...
Currency Winds and Market Waves: Banks, Central Banks, & Policy Divergence?
Yesterday’s decision by the Japanese Central Bank not to extend its monetary easing, strengthened the Yen and significantly pressured the Nikkei Index. It has been obvious in the last several months that there is a strong inverse correlation between the Yen and the...
Weekly Market Update
Market Action Major U.S. indices hit their highest points since last July and set 2016 highs this week. Bond yields have also hit their highest mark in recent weeks, signaling renewed risk appetite in markets. The energy sector led this week on the back of rising...
The Symphony of Asset Management: Caravaggio Meets Atlas in the Chameleon Age
The scientific art of asset and wealth management is like conducting an orchestra. Each musician is dedicated in playing her/his own unique instrument. The enjoyment of music is the product of coordinated instruments. Cacophony is the product of uncoordinated...
Weekly Market Update
Market Action European and Japanese shares led risk assets across the globe this week. Positive inflation data both in Britain and throughout the Euro area encouraged markets on the continent while Japan reiterated its readiness to intervene to prevent the Yen from...
Credit Impulses and Market Volatility: The Missing Link
Over the course of the last couple of weeks we have read reports that credit facilities are rising, production is on the upswing, Chinese tremors are subsiding, and an overall sense of calmness is returning into the markets. We do not dispute these facts but we take a...
Weekly Market Update
Market Action Risk assets returned most of their gains from the past week as earnings season is set to pick up momentum. Analysts are estimating that earnings will fall 9% over last year’s level and hope that it marks a trough in the corporate sector. Safe havens...
WWW: Wrong Tools, Wrong Targets, Wrong Diagnoses
The world economy may be entering into treacherous territory. Central Banks and policy makers seem to have misdiagnosed the credit problems and applied the wrong medication. We are referring of course to that fact that toxic assets such as derivatives and the...
