Current Thoughts on Earnings and Sentiment
“It takes the character to sit with all that cash and to do nothing. I didn’t get to where I am by going after mediocre opportunities.” – Charlie Munger Earnings season for the first quarter of 2021 has just begun and it promises to be one of the most interesting and...
Weekly Market Update
Global Market News Global equities drop slightlyFollowing a record-breaking week, global equities declined this week. The S&P 500 ended the week down 0.13%, while the Dow Jones and Nasdaq also dropped 0.46% and 0.25% respectively. The yield on the US 10-year...
Covid-19 and the Day After
Here is our take on the articles summarized below: Though the pandemic has devastated the global economy over the last year, there are signs of a robust economic recovery. National leaders are taking the opportunity the pandemic has presented to rebuild cities and...
Reopening & Execution Risks: Earnings Expectations and the New Wave of Innovations in Historical Perspective
The reflation trade that started in late 2020 and uplifted the fortunes of banks, energy, and small cap stocks might be experiencing a pause lately. However, as shown below, the earnings expectations for the full year are robust and strong. The fact that the leisure,...
Geopolitical Challenges & Statecraft
The global pandemic has had a destabilizing impact on many of the norms and institutions of world governance. For this week’s geopolitical look, we examine how several subsurface trends were brought to light by the crisis, focusing on a contraction of the middle...
Some Thoughts on Inflation
“The cure for high prices, is high prices.” Inflation has probably been the most debated and discussed macroeconomic variable of the past year. It’s been hotly discussed for much of the past decade as hysteria over QE/unconventional monetary policy has absorbed more...
Weekly Market Update
Global Market News Global equities make gainsGlobal equities made gains this week. Both the S&P 500 and Dow Jones were up 2.71% and 1.95% respectively, while the Nasdaq ended the week up 3.12%. The US 10-year Treasury dropped down a few bps to 1.66% at Friday’s...
Covid-19 and the Day After
Here is our take on the articles summarized below: While a flurry of positive vaccine news, declining Covid-19 case numbers, and improved economic forecasts have created optimism for a return to “normal”, we are not out of the woods yet. New Covid-19 variants...
Crossroads
At the Intersection of Geopolitics and Geoeconomics Here is a summary of the most important events that unfolded last month, and which may affect economic, financial and geopolitical issues in the months ahead: North America President Joe Biden has unveiled a $2...
Considering the Economic & Portfolio Costs of Free Money: Modern Monetary Theory (MMT) & Practice
By: John E. Charalambakis & Dale Ahearn Monetary theory, which posits that a change in money supply is the main driver of economic activity, has played a central role in attempts to manage the economy. The three main levers used by the Federal...
