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Market Analysis

  • Pathway to deregulation

    US equities continue to rally this week on continued optimism of increased fiscal spending by the Trump administration when they take office. For what has for many months been depicted as a disaster scenario in investors’ eyes is now turning into...

  • Bond vigilantes and Trump’s fiscal promises

    Now it’s been just over a week since US voters surprised the world by electing the controversial Republican candidate Donald Trump. To what investors perceived to be, possibly, another Brexit in terms of volatility, the equity market turned...

  • Transitioning into a political paradigm shift

    Political risks in global markets have reached new levels in 2016. From a Brexit vote outcome to a Donald Trump presidency, risks seem nowhere near abating in the near term, with the latest Italian polls leaning towards a rejection of Italian...

  • Why are banking stocks rallying hard?

    When Donald Trump made his case in front of the US electorate why he should be the next US President, he mentioned many changes in policies adopted by the Obama administration. Every proposed change has consequences - some good and some bad, there...

  • All eyes on December FOMC Meeting

    As had been widely expected, the US Federal Reserve’s Open Market Committee kept interest rates unchanged yesterday. In all fairness, it was never really on the cards as the market was only pricing in a 16% change of a rate hike as at last...

  • What importance do we give to our overall wealth?

    The role of asset managers is quite vast, but, put simply, can be split into three distinct roles. Firstly, asset managers need to grasp and decipher market direction by taking a close look at the way the global economy is developing and evolving,...

  • Fixed income-differing momentum in Europe and the US

    Fixed-income investors should be more than satisfied in terms of performance, as till date the income generating asset class proved to be one of the top performers. In Europe the performance is primarily attributed to the fuelled monetary policy...

  • Where’s the EURUSD heading?

    Do not disregard the impact forex can have on the performance of your portfolio. Currency exposure is as much as investment decision as any other asset class you hold in your portfolio. To prove my point, take a look at the performance of the FTSE...

  • RS2 share price drops to a near 1-year low

    RS2 share price drops to a near 1-year low

    The MSE Share Index moved minimally higher to 4,550.124 points (+0.02 per cent) as the gains registered in the share prices of MIA and Mapfre Middlesea outweighed the declines in RS2 and Malta Properties. Trading volumes advanced to a three-week...

  • Could complacency kick in once again?

    Let’s face it. 2016 has been more than benign for international bond markets. Ok, the first six weeks of the year were nothing to ride home about, but the rally which ensued beat analysts and investors’ expectations and forecasts. In my previous...

  • LVMH Moet Hennessy Louis Vuitton – company going strong

    We increased our price target on LVMH from €167/share to €181.50 following the third quarter sales and revenue release. This represents a 10% upside to the current price.  The increase in price target is a result of an increase in the forward...

  • Fed rate hike - December in the loop

    Fed rate hike - December in the loop

    Over the past months market participants were anxious awaiting any form of communication of when the Federal Reserve (Fed) will act and hike interest rates for the second time, following the first rate hike since 2008 which occurred in December...

  • Oil: friend or foe?

    Oil: friend or foe?

    Oil prices in the third quarter were eight per cent below the average price last year. When OPEC caught the market off guard by agreeing to cap output for the first time in eight years West Texas Intermediate crude jumped to over $50 per...

  • Credit – where do we go from here?

    Credit – where do we go from here?

    Believe it or not, we’re already almost in the mid-way mark in October and we’ve entered the final stretch of 2016, with credit markets having had their better share of what was a rollercoaster ride in the first few months of the year. The rally...

  • Google dominating our lifestyle

    A few months back, during an interview on artificial intelligence, Elan Musk said that of all the companies working on self-aware computers only ‘one certain firm’ worried him. It does not take much imagination to conclude that in all probability...

  • Avoiding Red October and beyond

    September has seen two central bank meetings, an oil agreement struck and persistent uncertainty surrounding Brexit and the upcoming US elections. Throughout the month, the bond market generated mixed returns across the board, with the BOFA ML...

  • Bonds funds, the duration concept and the current scenario

    Bonds funds, the duration concept and the current scenario

    Unfortunately, few investors give the necessary importance to the duration concept. Initially investors should make a clear distinction between ‘duration’ and ‘modified duration’. The former is basically the duration of the bond, i.e. years to...

  • NXP Semiconductors pushing the boundary of the internet of things

    NXP Semiconductors pushing the boundary of the internet of things

    The roller coaster ride in equity markets experienced in the past few years has led many to believe that somehow industrial innovation has stood still. This is far from the truth; the boundary that limits everyday life is being pushed aggressively...

  • Have markets had enough of central banks?

    Have markets had enough of central banks?

    I think the markets have had enough of central banks, for the time being. Undoubtedly, the world’s leading central banks have taken the limelight this month and have driven both sentiment and dictated market direction in the run up to each...

  • Portfolio risk vs asset risk

    Portfolios of retail investors are generally composed of a number of diverse asset types. The level or tolerance to risk between one investor and another differs and hence, not only the composition of portfolios but also the diversity in terms of...

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