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Market Analysis

  • ETFs - A love-hate relationship

    I will start off by defining an Exchange Traded Fund (ETF). An ETF includes a basket of equities, bonds, commodities or assets which track an index. Take the Lyxor ETF DAX (DAX FP EQUITY) as an example. If you buy this ETF, you would be getting...

  • BMW, investing in the luxury auto sector

    BMW, investing in the luxury auto sector

    The automobile sector has outperformed the market year-to-date with the Automobile & Parts Index returning 32 per cent which is nearly twice the return achieved by the European Benchmark Stoxx 600 index which has returned over 16 per cent over the...

  • Ryanair – A share that deserves its wings

    Ryanair – A share that deserves its wings

    If someone had to ask me to name a company which comes close to being the most efficient in its sector, Ryanair would be it. Ryanair is an Irish low-cost airline headquartered in Swords, Dublin, Ireland, with its primary operational bases at...

  • Louis Vuitton – It’s not just about the bag!

    Moët Hennessy Louis Vuitton (LVMH) is a French multinational luxury goods conglomerate, headquartered in Paris. In 2014, the Group generated revenues of €30.6bln which came from the following segments; Wines and Spirits (13%), Fashion and Leather...

  • Taking stock of the current state of credit markets

    Taking stock of the current state of credit markets

    European credit markets, most notably Investment Grade corporates and sovereign bonds, have had a remarkable run so far in 2015, but so have their equity counterparts which surged ever since Mario Draghi officially announced the ECB’s QE program...

  • Are the prices of Malta Government Bonds right?

    This week the new Malta Government Stock 3% 2040 started trading; up to the time of writing, the last traded price has shot up to over 117 on the Malta Stock Exchange from its initial public offer price of 100. No wonder this issue was heavily...

  • Sometimes regulatory changes create investment opportunities

    After an eventful financial crisis and a flurry of bank bailouts around the world, regulators have worked to redefine the capital requirements, introduce more relevant liquidity metrics and impose more stringent ratios for the Systemically...

  • Common investment misconceptions

    It is natural for non-professional investors to at times fall victim to some misconceptions and forego opportunities or find false opportunities. For those looking to pre-empt this I think it is worth reading on. Bonds trading above par are a poor...

  • It is time to grab a bud!

      If I had to ask you to list the 10 most popular beers in the world, your list would most probably include Budweiser, Stella Artois, Beck’s and Corona to name a few. What you probably would not know is that all these brands fall under the same...

  • Central bankers add to the investment funds’ advantage

    Central bankers add to the investment funds’ advantage

    I am no stranger to the local aversion towards investment funds as for many (potential) investors the word “fund” has negative connotations. Although admittedly I am not an objective writer I have to say that in the current environment such...

  • Leveraged ETFs; not for the faint hearted

    Leveraged ETFs; not for the faint hearted

    The appeal of investing in a leveraged Exchange Trades Fund or an Exchange Traded Note (ETF) is simple; the leveraged fund increases the exposure and impact of the underlying investment. For example a leveraged ETF based on oil may attempt to...

  • There’s no place like KB Home

    The real estate sector is considered to be one of the most critical and sensitive sectors of a country’s economy, as it is a clear gauge of the state in which consumers within the economy of each country is in as well as an indication of economic...

  • Whitbread – A name worth remembering by investors

    When I mention the name Whitbread to an investor I get a blank look followed by ‘I have never heard about this company before.’ However, when I go on to explain that this Group owns the Premier Inns brand and the Costa Coffee chain, the investor’s...

  • The ECB is knocking at banks’ comfort zone

    The ECB is knocking at banks’ comfort zone

    The first week of the European Central Bank’s bond buying programme, dubbed expanded asset purchase programme but more often referred to as Quantitative Easing (QE) appears set to close its debuting week on a strong note. In fact, the market...

  • Saint-Gobain, Investing in a European recovery

    The sector whose performance mostly mirrors the state of an economy is the construction sector. Investing in direct property typically requires confidence in future income and access to bank credit. These two factors are highly correlated to the...

  • Shipping movements

    The following ships are expected in Malta: The Alexander Maersk from El Khoms to Misurata, the Eclips from Algiers to Algiers, the Thies Maersk from El Khoms to Misurata (all Thomas Smith Shipping Ltd), the BF Confianza from Ancona to Salerno...

  • What’s in it for me?

    How things change over a few months; just only a few months ago, the word on the street was that the large part of eurozone was debt-laden and had too much outstanding debt on the secondary markets. Now, with the ECB having already stated that it...

  • QE starts today - Tips on what you should be buying

    Today the European Central Bank (ECB) starts its long awaited bond buying programme. One of the goals of this exercise is to make people feel richer and get them to spend more money with the hope of increasing growth in Europe. The beneficiaries...

  • The liquidity hallmark

    The liquidity hallmark

    The European Central Bank (ECB) concluded its monetary policy meeting yesterday without surprises but with a renewed commitment of intervening as needed in the markets until “we see a sustained adjustment in the path of inflation which is...

  • Making the most of Quantitative Easing

    Making the most of Quantitative Easing

    Today marks the day that the European Central Bank will probably announce the start of its quantitative easing program. Assuming that the ECB starts purchasing Malta Government Stocks in March, the typical Maltese investor used to hoarding...

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