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Market Analysis

  • Credit markets - the importance of active management

    Credit markets - the importance of active management

    The debate at which point of the cycle credit markets are positioned continues to be an important discussion amongst market participants. Indeed, the bull credit market maintained its sustainability primarily through the support of major Central...

  • Investing in European insurance

    Investing in European insurance

    The insurance sector is possibly a good example of how an industry can learn from its mistakes and emerge stronger from a crisis. Following a difficult period in early 2000’s when the sector experienced a near meltdown as high exposure to equities...

  • The relationship between the Fed outlook and the US economy

    The relationship between the Fed outlook and the US economy

    Jerome Powell, the newly appointed Federal Reserve (Fed) Chairman, has already managed to trigger an intra-day upward tick in the US Treasury 10-year following the relatively FOMC’s hawkish Meeting. At the incumbent chairman’s first meeting, the...

  • CoCos-risk and attractiveness

    CoCos-risk and attractiveness

    Many market participants might lack the necessary experience to understand the complexity of the Contingent Convertible (CoCo) asset class. This comes as no surprise when we consider the fact that the first CoCo was issued in 2009 by Lloyds...

  • Trump and the Nafta agreement

    Trump and the Nafta agreement

    The North-American Free Trade Agreement (Nafta) was executed in 1994 between the United States, Mexico and Canada. The agreement specifically relates to the lifting of tariffs (taxes on exports and imports) on all goods traded among the countries...

  • Investing during a sell-off

    Responsible investing is about balance, diversification, liquidity and the long-term. But this investment year is not turning out to be simple to interpret. As investment managers we are being forced to put in one pot exchange rates, economic...

  • Equities bounce after the storm – why?

    Equities bounce after the storm – why?

    Equity markets bounced back last week from their lows. The DAX fell 10.7% from its high and rebounded 2.7%, whereas the S&P 500 fell 10.16% and rebounded 5.82%. Why the bounce? Last Wednesday we got inflation data for January out of the US, which...

  • The low interest rate environment

    The low interest rate environment

    Over the past years, the wave of economic weakness, primarily following the recession way back in 2008, has led major Central Banks to take action by deploying certain measures in an attempt to trigger an economic recovery. To this extent,...

  • Corrections only turn bears in recessions

    Corrections only turn bears in recessions

    Equity markets had a rough month to date as the worries around rising inflation, bond yields and a more aggressive Fed continued to impact. US shares last week fell 5.2%, Eurozone shares fell 5.1%, Japanese shares lost 8.1% and Chinese shares fell...

  • Home Depot shares – an equity to put on your list

    Home Depot shares – an equity to put on your list

    The Home Depot, Inc. is an American home improvement supplies retailing company that sells tools, construction products, and services. We have a price target on The Home Depot of $230. The shares are currently trading on a P/E of 25.50x and an...

  • How does a bond differ from a bond fund?

    How does a bond differ from a bond fund?

    It is safe to state as a fact that there are many misconceptions regarding the intricate differences between a bond and a bond fund. In this article, I will attempt to outline the key differences between both instruments, and what to look out for...

  • Addressing your concerns on equity markets

    Addressing your concerns on equity markets

    After a stellar 2017 and an even stronger January, risky assets have undergone a sharp pullback in the last week tumbling more than 10% from their peak on 23rd January 2018. This correction in equity markets (which was long overdue) was partly...

  • IMF revises forecasts higher, but how should governments plan ahead?

    IMF revises forecasts higher, but how should governments plan ahead?

    It is no secret that the world economy is gaining traction. Economic data points have been indicating that this has been the case over the past 12 months or so, and recent central bank activity by the US Federal Reserve is testament to this. The...

  • What is the World Economic Forum?

    The World Economic Forum's (WEF) annual meeting is a four-day event that is expected to attract over 2,500 participants, including many leaders from the world of politics, business and civil society. The event is taking place between January 23rd...

  • High yield expectations in 2018

    The uncertainty surrounding the fixed-income market has continued to be discussed amongst market participants over the past months. As I have pointed out in previous writings, the debate is justifiable. The monetary tightening preposition should...

  • Home Depot shares – one to take home

    Home Depot shares – one to take home

    The Home Depot, Inc. is an American home improvement supplies retailing company that sells tools, construction products, and services. We have increased the price target of The Home Depot from $170 to $230. The shares are currently trading on a...

  • Credit rally resumes, but watch out for primary markets

    Credit rally resumes, but watch out for primary markets

    Credit in 2017 and the asset class have started 2018 in the same manner as last year. Credit spreads have tightened even further and activity on the primary market have started at relatively elevated levels for this time of the year. One would...

  • Which asset class is the most risky?

    In the financial world, there are varying interpretations and definitions of risk, with scholars, market practitioners and investors all viewing risk from their own perspective. Nothing wrong with that, but it is important for investors to...

  • Key themes for the equity markets in 2018

    2017 was an excellent year for equity investors; the Euro Stoxx 50 and S&P500 rallied 10% and 20% respectively and it seems that the equity market does not intend to slow down in 2018. However, back in January of last year, there were few...

  • EM credit-strong foundations and 2018 outlook

    EM credit-strong foundations and 2018 outlook

    Over the past months, I have continued to stress the importance of holding an allocation to Emerging Markets (EM), as I strongly believe that selective sovereign issuers, in addition to corporate issuers, pose attractive opportunities for...