Market Mispricing and Distortions: Liquidity and Credit Concerns
Over the last few days the markets have exhibited signs of fears and some distress. Diverging a little bit from our recent commentaries that dealt with the investment paths of 2016, I would like us to review the main reasons for the recent market behavior. Before...The Investment Paths of 2016, Part III: Ain’t Misbehavin’ and the Crossing of the Volatility Bridge
During most of 2015, investors had to worry about a Grexit, a China slowdown, a commodities bust, or a synchronized degradation of market expectations. At the dawn of 2016, we are of the opinion that a bridge is open that can put behind the volatility of 2015 and...The Investment Paths of 2016, Part II: From Risks to Opportunities
Much ado about nothing may end up being not just a Shakespeare play but also the reality that will sink in after the Fed starts raising short term rates. All those talks, analyses, papers, assessments, and myriads of opinions about the terrible effects that the rate...Diverging Asymmetries and Market Fragilities: Understanding the Investment Paths of 2016, Part I
Well-respected publications such as The Economist and The Financial Times have recently published extensive reports regarding the threats to the global economy from emerging markets’ debt. The fact is that emerging market economies have accumulated significant amounts...The Tranquility of Volatility: The Risk of the Uncertainty and the Pricing of Assets
It is an indisputable fact that the last ten months have been characterized by high volatility. The market breadth (defined as the number of advancing over declining stocks) has turned below one (implying that more stocks declined than advanced) several times during...Sign Up for Our Publications
