The Markets and the Search for a Refiner’s Fire: Staring in the Mirror
In chapter 19 of the Odyssey, Homer writes about Penelope’s encounter with a mysterious guest. “Falsehoods all, but he gave his falsehoods all the ring of truth. As she listened on, her tears flowed and soaked her cheeks as the heavy snow melts down from the high...Enlightenment in the Era of Central Banking: Fearing the Normal or Normalizing Fear?
The flowering of the Enlightenment across Europe in the 17th and 18th centuries took place when a diverse group of thinkers questioned perceived opinion. The names of Descartes, Spinoza, Locke, Hobbes, Leibniz, Hume and of many others are associated with free and...Masquerading Risks and Positioning Portfolios for Growth: The Centrally-Induced Fat Tails
The markets have been used to central banks actions that mitigate downturns (the famous/infamous puts that take the names of central bankers such as the Greenspan and Bernanke puts). Such actions actually induce risk taking, making the tail of outcomes and returns...Financial Stress, Valuations, and Realignment Risks: Is Uncertainty Looming?
The external debt of developing economies has more than tripled in the last ten years. Brazil of all countries is selling notes to yield-hungry investors that mature in 2047! Where is the rationale to buy 2047 notes in a country whose current deficit exceeds 10% of...Reconciling Market Signals
In last week’s commentary we pointed out that the accumulation of debt by corporations may be behind the market upswing (through shares buyback programs while the fundamentals do not support such uptrend). The fact that yields on sovereign and corporate bonds have...Sign Up for Our Publications
