Market Analysis
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Market Analysis

  • What is the impact of tariff hikes?

    What is the impact of tariff hikes?

    Even though the latest tariff hike (from 10% to 25% on $200bn of Chinese imports) is likely to have a modest direct impact on Chinese and US GDP (-0.2%), neither side has any interest in seeing the trade war intensify for two main reasons. The...

  • Trade war saga unexpectedly re-emerges

    Trade war saga unexpectedly re-emerges

    A few days ago, many market participants believed that the trade war saga would have ended up on a positive note with an agreement that suites two of the largest economies, the US and China. However, this week markets were caught by surprise...

  • Achieving long-term returns through balanced funds

    Achieving long-term returns through balanced funds

    Investors closely monitoring the markets would not be at fault for stating that volatility seems to have increased over the past 15 months or so. With 2018 being a year to forget, both in terms of total returns and the volatility it brought with...

  • Where is the euro heading?

    Where is the euro heading?

    While Europe experienced tension and wars between neighbouring countries for centuries, nations finally decided to come together to create a political and economic powerhouse – the European Union - that could compete with global powerhouses. The...

  • Tigné Mall plc – is it a good time to buy the stock?

    Tigné Mall plc – is it a good time to buy the stock?

    The research team at Calamatta Cuschieri recently distributed an equity research report on Tigné Mall plc (TML) with a “Buy” recommendation and a one-year price target of €1.17, implying a potential capital upside of 24.5% to the current price of...

  • Credit grinds tighter, muted activity expected this week

    Credit grinds tighter, muted activity expected this week

    The first three months of the year yielded positive results for the credit investor, following the lacklustre performance registered during 2019. There had been many catalysts for last year’s sharp market correction; talks about a US-China trade...

  • Markets and the IMF’s growth concerns

    Markets and the IMF’s growth concerns

    The change in tone by leading Central Banks in this week’s monetary updates came as no surprise given the latest downward revision of growth by institutions, such as the International Monetary Fund (IMF). It is a fact that recent figures confirm a...

  • Stagnant global economy?

    Stagnant global economy?

    A false sense of security might come about when liquidity injections and zero interest rate policies disguise risk. Today, the risk is more evident as not only have we seen large downgrades to consensus growth estimates and central banks'...

  • The hottest new industry

    The hottest new industry

    Forget bitcoin or any cryptocurrency, the hottest new industry is mining. No, I am not referring to the mining of precious metals or oil but data. Data harvesting is the fastest growing industry in America according to the Financial Times, an...

  • Give credit to credit

    Give credit to credit

    Following dismal run risky assets endured during 2018, particularly the final quarter of the year, few would have imagined that the situation would have shifted in such a sharp manner as it did in the first three months of 2019. The market...

  • How greed can impact portfolio returns

    How greed can impact portfolio returns

    It might sound strange to older people to know the rate at which money has pretty much become a necessary commodity in everyday life. It is hard to imagine life without money in 2019. Everywhere you look, someone is making money, monetising...

  • Argentina: deeper unavoidable recession?

    Argentina: deeper unavoidable recession?

    Appreciating pressure in January 2019 for the Argentine peso emerged, dropping below the Central Bank’s no-intervention range, encouraging the bank to repurchase hard currency and relax the monetary policy. Meanwhile, their manufacturing sector...

  • What does an inverted yield curve mean?

    What does an inverted yield curve mean?

    An inverted yield curve is an interest rate environment through which longer-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This type of yield curve is considered to be a predictor of economic...

  • Japan has the biggest Central Bank Bubble

    Japan has the biggest Central Bank Bubble

    Japan's economy was a huge success story in the past, and today the country is wealthy, healthy, and the aging population continues to reap the benefits of such hard work and prosperity. However, in recent decades economic growth has been...

  • Global crude oil influencers

    Crude Oil is one of the world’s most demanded commodity because of its versatility in terms of products. The six most influential countries of the said commodity include the U., Russia, Saudi Arabia, Iran and Iraq, China and Venezuela. United...

  • Rebalancing an investment portfolio

    Rebalancing an investment portfolio

    Portfolio rebalancing refers to the process through which investors periodically reset and realign the weightings of a portfolio comprising of a mix of stocks and bonds, with the main aim to maintain the original desired asset allocation...

  • Understanding how hedged share classes work

    Understanding how hedged share classes work

    Any person working within the funds industry as well as those people whose investment portfolio consists of some allocation, in any shape or form to funds, foreign funds in particular, will note that, over recent years, we have been witnessing a...

  • Valeo - Reducing our recommendation to hold

    Valeo - Reducing our recommendation to hold

    Valeo reported results for 2018; we reduced our stance from a Buy to a Hold and reduced our price target from €40 to €33. Our reduction in stance and price target was brought about for the following reasons: EBIT margins - The company reported an...

  • Around the world: economy forecast

    Around the world: economy forecast

    Recently, 40 major economies were analysed based on inflation and GDP growth, the signs all point to Asia in terms of driving the global economy in 2019. High-growth economies Predominantly located in Asia and making up more than half of the...

  • Investor’s patience pays off as credit spreads tighten

    Investor’s patience pays off as credit spreads tighten

    In my article on February 19 “Investors – be patient yet be humble” I attempted to give the novice investor an intricate synopsis of the way markets operate, in the most simplest of ways, as well as to clearly highlight market dynamics and market...