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...Relevering Balance Sheets and Recalibrating Expectations: The Central Authorities Effect
Current financial and economic conditions in the US as well as in the EU are conducive to higher growth in the second half of the year. In addition, the shaping up of similar conditions in Asia and some other emerging and frontier markets point to a coordinated upward...Bullish Bias and Asset Classes Breakout: Diminishing Safety Margins
Last Friday we observed a divergence among major indexes. The DJIA and the NASDAQ moved in significantly opposite directions. The main reason for the drop in the NASDAQ (which continued on Monday) was said to be the inability of the main tech-related shares to reflect...Disintegration in the Age of Discontent: Unraveling Realities and the Market
It seems that we are on the verge of a new reality that could resemble the developments of the early 1970s. The global rules and order that were established in July 1944 at the Bretton Woods Conference came apart between summer of 1971 (abandonment of the gold...Sign Up for Our Publications
