Is the ‘great rotation’ upon us?
Stock markets have been fairly quiet in recent days, moving higher most of the time. But underneath, a spectacular rotation has been going on. Value stocks – which have lagged […]
Category Archives: EQUITIES
Where is the decline?
The chart above, created by JP Morgan, shows the calendar year returns on the S&P 500 Index and the intra-year drops that occurred during those years. This reveals an interesting […]
Equity v Bond Returns
Charts showing massive divergence are interesting to look at most of the time. And the ‘gap’ chart between US equity and bond returns is no exception. Since the start of […]
Earnings growth is not a prerequisite for higher equity prices
With global growth leveling off, investors are more focused than ever on corporate results. These reveal a less rosy picture than in previous years and company expectations are very muted. […]
The far-reaching effects of central bank policy
The impact of central banks should not be underestimated. And I don’t just mean their impact on economic growth and interest rates. Central banks are also a driving force of […]
Recession indicators are overrated for stock returns
Equity investors are always looking for signs of the next recession. Recessions mean higher unemployment, lower spending, lower earnings and ultimately more defaults, all of which are bad news for […]
Miniblog – Chinese profits down again
Profits of Chinese industrial companies fell 1.9% year on year in December, marking the second consecutive month of earnings decline. For 2018 as a whole, profits rose 10.3%, half the […]
Emerging stocks could make a comeback in 2019
2018 wasn’t a pretty year for equity markets in general, and for emerging markets in particular. Global stocks fell 4.1% (in euros), whereas emerging market equities realized a negative return […]
Volatility feels more extreme than it actually is
Markets have seen a sharp increase in volatility in recent weeks, with the S&P 500 experiencing its worst December month since 1931. But, looking back at the history, the total […]
The average return doesn’t exist (2019 edition)
Every year I post an update of the ‘average return doesn’t exist’ blog to show that the average return on equities is mostly a statistic, and is seldomly seen in […]
