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  • Sell in May and go away

    "Sell in May and go away is an investment strategy for stocks based on a theory that the period from November to April has significantly stronger growth on average than the other months. Typically an investor would sell at the start of May and...

  • Diageo – A sterling stock for 2017

    Diageo plc produces, distills, and markets alcoholic beverages, offering a wide range of branded beverages, including vodkas, whiskies, tequilas, gins, and beer. Many investors ask us for equity investments in sterling. We recently added Diageo to...

  • ECB meeting takes centre stage

    As had been widely expected, the European Central Bank's MPC members opted to keep interest rates unchanged. But the key take from yesterday's meeting was that the ECB is being interpreted as having taken a small but meaningful step towards...

  • Will France carry the flag of the next revolution, again?

    Claiming that the western world is fed up with the current crop of politicians is an understatement. If US voters are able to stomach a Donald Trump as their president, then rock bottom is not far below. Europe is not far behind. The UK has voted...

  • What differentiates a bond from a bond fund?

    There are many misconceptions around the difference between a bond and a bond fund.  By definition, a bond is a debt obligation issued by entities, such as corporations or governments. When an investor purchases an individual bond, he is...

  • Endowment bias

    Endowment bias is an emotional bias where people value an asset more when they own it rather when they don't. Endowment bias is inconsistent with standard economic theory, which asserts that the price a person is willing to pay for a good should...

  • Credit resilience persists as market focus shifts to earnings season

    Credit markets have had a somewhat resilient start to the year, particularly high yield markets with no particular large swings in risk aversion witnessed so far since the start of the year. Investment Grade bonds however have had to bear the...

  • 2017 - a threat or opportunity for EM currency bonds

    In 2016 emerging market (EM) hard currency bonds registered a strong performance. Bofa Merill Lynch emerging market index posted a total return of 17.3 per cent, despite the fact that investors were aware that the Federal Reserve (Fed), continued...

  • Credit markets in December 2016

    December is characteristically a strong month for credit, and this time was no exception. Coming on the back of what had been a gruelling start to Q4, credit had its fair share of weakness during the months of October and November, December turned...

  • From black gold to sun power

    I was recently amused by a photo which depicted a solar powered house in Malta surrounded by high-rise buildings. It is a pity really, since these situations only serve to deter investment in future proof energy. Solar power is now estimated to be...

  • Shifting investment strategy for 2017

    All major economies have seen the share of consumption in GDP figures go down since 2008. This is especially true in the Eurozone where unemployment has weighed heavily on consumption patterns. The trend is expected to start reversing in 2017. The...

  • December’s ECB verdict and sovereign yields

    In the previous monetary policy committee meeting, the European Central Bank (ECB) indicated that in December's meeting some sort of movement in monetary policy would be communicated. In fact, as promised a change was announced yesterday and to a...

  • November - a hemorrhage month for bond investors

    Over the past months, investment professionals have questioned whether the 30-year old bull market is heading towards an end. Undoubtedly, the month of November proved to be one of the main concerns for bond investors, as yields across the board...

  • Foot Locker Inc – fashionably attractive shares

    Foot Locker is a leading global athletic footwear and apparel retailer, which caters to the sneaker enthusiast. Foot Locker provides the best selection of premium products for a wide variety of activities, including basketball, running, and training.

  • Trump won: what next?

    The unthinkable has happened again and Donald Trump will be the next president of the United States. As the probability of the US presidency going to Trump became more certain, financial markets reacted violently. Mexico, which was threatened with...

  • November rain... or shine?

    As fears of one market factor recede, other fears arise. It is this jittery investor behaviour that complements the slowdown in global growth expectations. Brexit woes may have receded over the past few weeks, yet US presidential elections and a...

  • Sterling considerations

    Maltese investors currently have a dilemma when mulling over British sterling investments. While it is true that the pound has rarely seen such weak levels, the last time the pound traded at similar levels was in 2010, there is no guarantee that...

  • Extending QE in Europe? Draghi’s no hint

    This week investors were anxious on the expected news of the European Central Bank rate decision, following chatter that it would halt its quantitative easing (QE) programme. The said chatter had implied a sell-off of circa 350 basis points (bps)...

  • The UK: a case of leaving port without a destination?

    The European Union was not perfect before the UK voted to leave and it will never be. Even if the aim is economic, security or welfare, the EUis a political union, built by politicians and run by politicians. And who expects a political world...

  • 'Hunger is insolent, and will be fed'

    'Hunger is insolent, and will be fed'

    Having analysed, reviewed and commented on financial markets over the past year, I believe a slight touch of philosophy to market movements and economic behaviour could help economists and policymakers think outside-the-box.The past year has seen...

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