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 […]

Corporate debt is at record high. Net equity issuance has been negative for the last few years. The shares buyback pattern is simply staggering. The fact that almost 70% of […]

The extraordinary global increase in the debt-to-GDP ratio requires a growth rate of at least 4% in order for the debt to be sustainable. The unfortunate thing is that such […]

Somewhere in the middle of the Pacific last weekend over dinner with Bob Zimmerman the lyrics of his song “A Series of Dreams” echoed in my ears. The attempted coup […]

It seems that the bond and equities markets are telling us two different stories. The former with the declining – and in some major cases negative – yields is like […]

It is the argument of this commentary that following the Brexit vote we may be entering into a period of regime uncertainty. By the latter we mean political, economic, and […]

The Brexit vote (for which we reserve some doubts that it is ever completed) generated some panic selling, sending investors to the refuge of safe havens. Hence, government bonds experienced […]

“A greater Quantity [of money] employs more People than a lesser Quantity”, said John Law in 1705 in his pamphlet titled “Money and Trade Considered, with a Proposal for Supplying […]

Last week the European Central Bank (ECB) started buying corporate bonds. Over the course of the last four year the ECB has committed to “do whatever it takes” to save […]

Productivity growth in the US will decline for the first time in over thirty years, raising the obvious question: How about all those magnificent innovations that constantly change our lives […]