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 […]
Tag Archives: Equities
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, […]
Quick Fact – As goes January…
We are only halfway through January, but it doesn’t feel like a fresh start to the new year, now does it? From day one markets looked grim and sentiment turned […]
Sell in May – Early Summer Update
Here’s a very brief update on this year’s ‘Sell in May’ effect. The graph above shows that during last winter period (November – April) stocks yielded healthy returns. Especially in […]
Six years of Central Bank Dominance in Six Charts.
Six years ago, on March 09, we hit the low in stock markets. After five quarters of falling stock prices, the S&P 500 index hit 666 (yes 666), the bottom […]
Three charts on stock markets & volatility
The relationship between stock market returns and volatility is negative. Common investor knowledge, I presume. Since the start of this millennium the correlation between weekly changes in the VIX index […]
The Problem with Volatility Investing
Volatility is back. And it has not gone unnoticed. As the VIX index spiked to above 25 for the first time since June 2012, US equities plunged 8% since the […]
The Magic of Round Numbers Explained
During the last couple of days, my Twitter timeline is held hostage by the number 20,000. As the Dow Jones nears this ‘magic’ number anxiety among investors is rising. But […]
Week End Blog – Tumbling Stocks, Growth Spikes and Yield Reversals
Coincidence or credible warning signal? Whatever it was, the fact is that high yield bonds sold off way before equities got crushed this week. This week is no done yet, […]
Week End Blog – High Yield Shivers, Rate Conundrums and Poker Profits
It long seemed endless, the powerful rally in high yield bonds. But investors grew more cautious in recent weeks, pushing the prices of high yield bonds down. The positive correlation […]
