Cheapening the Currency: The Wrong Way Forward
In the last few commentaries we have noted that while equity markets may be stretched, there might still be room to grow given the current macro-circumstances, corporate earnings, and business sentiment. In this week’s commentary we would let some graphs do the...World Markets, Bank Debt, and Diversification: Earnings and Other Drivers
As many analysts have pointed out lately, the equity markets at the current levels are stretched, but probably not over-stretched. Global equity correlations have been falling this year (from their high of 77% in 2009 to around 39% in 2017), providing some...Substituting for the Credit Cycle: An Optimistic Perspective
There is almost no doubt that the extraordinary measures taken by the central banks around the world over the last several years uplifted equities, lowered cost of capital, increased corporate prospects and in general created a market upswing at a time when global...Valuation Metrics, Currencies, and Portfolio Rebalancing: Kantian of Fichte?
According to most valuation metrics, European stocks trade at a discount relative to those in the US. Consequently, fund managers are on a shopping spree for EU-based equities. As a result the Euro has been strengthening against the dollar. Certainly, the...Reverberations and Growth Prospects: Implications for Equity and Fixed Income Markets
In the last few weeks two developments – related to key issues for the health of the global economy – have been unfolding. The first deals with European banks, and the second with the trajectory of oil prices. Last month two major Spanish banks (Santander and Intensa...Sign Up for Our Publications
