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Market Analysis

  • 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...

  • The main risks for 2018

    The main risks for 2018

    Optimism is a word that is much more at comfort going into 2018 than it ever was in 2017; growth is a constant almost globally, and deflation is off the vocabulary. Europe is forcing its way ahead, China hasn’t collapsed yet and the United States...

  • Credit market wrap 2017

    Credit market wrap 2017

    In 2017, market participants were faced with several dilemmas on whether the credit market will uphold the generosity it offered to investors over the past couple of years. Indeed, this uncertainty was mainly brought about by the wave of monetary...

  • Countdown to Mifid II (Version 1)

    Countdown to Mifid II (Version 1)

    Mifid II is an overhaul of the Markets in Financial Instruments Directive, and has been designed in such a way so as to offer enhanced protection for investors as well as instil greater transparency into the way financial markets operate, across...

  • The wealthiest investors in 2017

    The wealthiest investors in 2017

    It is Christmas time, research slows down, markets are calmer and trading volumes decrease at a rate inversely proportional to the rate of consumption of alcohol. At least that is how it is supposed to work. What is plainly clear is that from now...

  • Emerging markets- an opportunity or a threat?

    Emerging markets- an opportunity or a threat?

    Emerging markets (EM) have over the years offered very generous returns to investors, despite the fact that the sensitivity to both commodities and the movement in the dollar currency have always been seen as a threat to the said regions. I recall...

  • Seismic shifts in global influence?

    Seismic shifts in global influence?

    With a few notable exceptions, namely North Korea, China, Saudi Arabia and a few others, people have the power to approve or disapprove of the management of their country through their vote. Therefore I find it difficult to dissociate the current...

  • Déjà vu: Venezuela announces need to restructure

    Déjà vu: Venezuela announces need to restructure

    This year, specifically on August 11, I had pointed out the challenges that the government of Venezuela was facing in terms of its finances. In my concluding remarks, I had also specifically stressed the point that debt repayments were more...

  • Diversification, negative correlation and over-diversification

    Diversification, negative correlation and over-diversification

    Let me get straight to the point. While no-one can credibly contest the merits of diversification in an investment portfolio, it is all too often that investors end up with a long list of non-performing assets simply in the name of diversification.

  • Reasons why people don’t invest, and solutions

    Reasons why people don’t invest, and solutions

    Even if it is hard to believe, there are many individuals that do not invest their savings to increase their wealth. As I always say, if we do not gain money through time, we are losing it. Inflation is always there to get you. It is important to...

  • Christmas can’t come any sooner for the bond investor

    Christmas can’t come any sooner for the bond investor

    My colleague, a fellow portfolio manager, and I had been monitoring price developments in great detail during the final two weeks of October, and when the final net asset value of the funds we manage were issued late last week, we both looked at...

  • Monsanto: Time to cash in on your profits

    Monsanto: Time to cash in on your profits

    About the company Monsanto Company is a publicly traded American multinational agrochemical and agricultural biotechnology corporation. It is headquartered in Creve Coeur, Greater St. Louis, Missouri. Monsanto is a leading producer of genetically...