Market Analysis
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Market Analysis

  • Investors – be patient yet be humble

    Quantifying how important the value of money is in a person’s life is extremely cumbersome to say the least. Furthermore, carrying out a comparative analysis of money on a relative basis between one individual and another, becomes even more...

  • Amazon – Stay in the Game

    Amazon – Stay in the Game

    Amazon reported earnings beat for Q418, but first-quarter revenue guidance fell short of expectations due to increased investments in 2019 and uncertainty surrounding India. India has been a notable challenge for Amazon, and the company wasn’t...

  • Building an investment portfolio: stocks vs bonds

    Building an investment portfolio: stocks vs bonds

    Turmoil in the stock market can put investors on edge. After witnessing recent market turbulence, specifically related to equity international markets, investors are aware that stock prices can plunge as easily as they can soar. However, many...

  • Trade war anxiety

    Trade war anxiety

    At this point, it is to everyone’s knowledge that an ongoing Trade War has been active given how markets were beaten down last year. Even though markets had retreated in January, concern that no trade deal between the US and China may be struck...

  • Corporate bond yields and their relevance

    Corporate bond yields and their relevance

    Fixed Income instruments, also known as bonds, issued by companies are known as Corporate Bonds. Depending on the risk profile of the bond issuer, these can take various forms, namely Investment Grade Corporate bonds and/or High Yield bonds, and...

  • Stubbornly strong Germany

    Stubbornly strong Germany

    German unemployment has increased by 196,000 in January (not seasonally adjusted), bringing the total number of unemployed to 2.406 million - the highest level since March but still significantly lower than in January last year. In...

  • The abrupt monetary U-turn – a leading indicator pinch

    The abrupt monetary U-turn – a leading indicator pinch

    The economic pressures over the past days have abruptly pushed the Federal Reserve (Fed), to place the probability of further rate increases underneath the carpet, for the time being. The decision was primarily brought about by the anticipated...

  • Economic activity being driven in wrong direction

    Economic activity being driven in wrong direction

    Economic growth is a direct function of productivity which measures the amount of leverage an economy can generate from its two primary inputs, labour and capital. Without productivity, an economy is solely reliant on the mentioned inputs. Due to...

  • May the force be with you

    May the force be with you

    We are well into 2019 yet the themes which characterised 2018 are nowhere close to being resolved. More than two thirds of investors who were exposed to markets last year have nothing to show for it; on the contrary, are still well in the red,...

  • A new US vs China tech cold war

    A new US vs China tech cold war

    During 2018, the Trump administration recognised China as a strategic technological threat. This has led to fears in China that American technology may ultimately become unavailable, which would be a strategic threat to China’s own economic...

  • Is it time for the bear market to take over?

    Is it time for the bear market to take over?

    Following the worst year for the stock market in the last decade, will 2019 offer any hope for recovery? Both the London and the European market has so far proven otherwise as they open the new-year in red, with the FTSE 100 Index and the Euro...

  • The fear of inflation acceleration in the UK as Brexit approaches

    The fear of inflation acceleration in the UK as Brexit approaches

    In the face of a high degree of political uncertainty surrounding Brexit, UK asset markets have remained relatively stable. The pound has slightly weakened since the initial devaluation brought about after the 2016 referendum. In furtherance,...

  • Canada’s interest rate hikes in 2019

    Canada’s interest rate hikes in 2019

    For the moment, Canada’s economy continues to gain the rewards of strong US activity and should see a reputable 2.5% growth rate overall for 2018. Moreover, it could be seen that Canada will grow at a slightly slower pace in terms of growth in...

  • Is the US at its peak?

    Is the US at its peak?

    Ten years after the global financial crisis, it is safe to say that the US has come out in a far stronger position than most other major economies. Output is up 23% from the 2009 gutter, while there are over 20 million more people in the...

  • What should be done to safeguard the European bond market?

    What should be done to safeguard the European bond market?

    The completion of Greece’s financial rescue programme this summer has been highly regarded by many policymakers as the end of the Eurozone crisis. However, the current confrontation between the European Commission and Italy over fiscal rules has...

  • Why the reinvestment rate risk matters

    Why the reinvestment rate risk matters

    It is quite common for investors to view the risk of an underlying bond investment from different angles, be it credit risk, interest rate risk, market risk, among others. The term risk can be easily interchanged and at times misused, as it is not...

  • European high yield debt, worth the dip?

    European high yield debt, worth the dip?

    European high yield (HY) debt over the past years has emerged as one of the best performing assets within its class. The reach for yield quarter on quarter was one of the reasons why this niche sector continued to tighten and appreciate in value,...

  • Does higher economic growth lead to higher returns?

    Does higher economic growth lead to higher returns?

    Most investors/analysts view the economic growth of a country/region as a good predictor of stock market returns, and this perceived correlation between growth and returns can have a big influence on their asset allocation decisions. Empirical...

  • Understanding asset classes and how they impact portfolio returns

    Understanding asset classes and how they impact portfolio returns

    Investing and risk are commensurate and synonymous with one another. The returns on an investment, and more importantly, the volatility and risk on an investment, is what ultimately distinguishes an asset class from another. In the financial...

  • A parallel currency?

    A parallel currency?

    As the Italian economy halts yet again and as the budget stalemate with its European partners intensifies, the idea of a parallel currency for Italy is again being heard around. The basic idea of this parallel currency would be to have the Italian...