Are Fed tightening cycles good or bad news for emerging markets? (Part I)
Most investors tend to agree that the Federal Reserve is in the midst of a monetary tightening cycle, which will take some time to complete. But when asked about the […]
Category Archives: EQUITIES
The Void?
Just recently, bond investor PIMCO published the chart shown above. It’s one of many charts hitting headlines in recent weeks, revealing that the end of an era of unprecedented monetary […]
The Average Return doesn’t exist.
Ask a random stock market ‘guru’ at the beginning of the year what he or she expects what equities will do that year and you will probably get an answer […]
Rational Exuberance?
Here is a ‘surprise’ for you. The number of news stories stating that irrational exuberance is back on the stock markets is growing rapidly. In addition, irrational exuberance was mentioned […]
A horrifically good investment strategy
Halloween is behind us. Which offers me the possibility to not talk about dominant central banks, for once. Even though, we now know who the new Fed chair will be […]
Goldilocks Returns…
It’s official, Goldilocks is back on the stock market. At least according to the fund managers that participated in BofA Merrill Lynch’s Global Fund Manager Survey. For the first time […]
Calm before the Storm?
Markets are unnervingly calm these days. During the last six months, the realized volatility of the S&P 500 Index fell to the lowest level in more than half a century. […]
Betting on rising volatility is a loss-making strategy!
Equity market volatility is low. Hence, recommendations to invest in volatility are abundant again. But before you pursue such an investment, let me warn you first. Because, making a profit from such an investment strategy requires perfect foresight. On average, a long position in volatility is a very unprofitable strategy. Especially, when volatility is low! […]
CAPE – the good, the bad and the ugly
The CAPE ratio, or Cyclically Adjusted Price Earnings ratio, is making headlines again. The stock market valuation indicator developed by Nobel laureate Robert Shiller is giving many investors headaches. But, […]
Bear Market Optimism
Markets are pricing in a low probability of a bear market, but are they right?
