Corporate Earnings Expectations and Market Multiples: Forthcoming Policies and Capital Cushions
Since the presidential election equity funds have experienced four consecutive weeks of inflows, while bond funds have been experiencing outflows. This makes sense if we consider the anticipated lower tax rates for corporations, and the incoming administration’s plans...
Weekly Market Update
Market Action Another week brought a new set of all time highs for the stock market. Financials were again among the market’s leaders thanks to rising rates and indications of a less strenuous regulatory environment under a new administration. China’s foreign exchange...
Seeking Roses among the Thorns: Prospects and Challenges in the Investment Landscape
There is rhetoric, and then there is reality. There are expectations, and then there is reality. There is a death valley but also the valley of peace. There are fears, but also hopes. There are thorns but also roses among them. There are opposing winds that could...
Weekly Market Update
Market Action Markets tempered their recent rally despite positive economic news from a number of sources this week. Tech stocks sold off as the rising dollar threatens overseas sales. The dollar continues to move higher as markets price in a Fed rate hike at the next...
Monthly Barometer’s Forward-Looking Monthly Review: An Interdisciplinary View of our Complex Global Economy
November 2016 In response to the ubiquitous head scratching as to what Trump has in store for the US and the rest of the world, we probed the exceptional network of The Monthly Barometer. The truth: everybody is clueless because Trump policies are unknowable....
European Developments Meet Bruegel: The Icarus Effect
While the markets enjoy historic highs and particular sectors experienced rallies (such as financial and healthcare) one of the questions that investors may have is whether value can be found in EU equities. From a valuation standpoint EU equities could be seen as...
Weekly Market Update
Market Action Equities continued to march higher this week amid hopes for a lighter tax and regulatory regime in the future administration. Japan’s monetary authorities announced a plan to buy unlimited amounts of 10-year bonds at fixed rates on Friday. Yields had...
The Meeting of Trends: A Value-Oriented Investment Strategy
In the last two commentaries we focused on asset allocation in times of change and on particular sectors that may benefit from forthcoming policy changes. In this commentary we would like to focus on an emerging convergence and suggest that a value-oriented approach...
Weekly Market Update
Market Action A wild week in trading ended with U.S. stocks posting new highs despite the surprise election of Donald Trump as the 45th President. Futures crashed during the election, down over 5%, but recovered to post strong gains. Stocks moved on speculation of...
Initial Reflections on US Elections and Markets’ Reaction: The Sisyphus Dilemma
As the results of the election kept coming in on Tuesday night, the futures markets indicated a turbulent opening for Wednesday. However, as the morning hours were unfolding and as the closing indicates, we had a complete reversal with the Dow Jones Industrial Average...
