Valuation puzzle
Equities are expensive. It’s difficult to argue against this. But does this also mean that markets will fall sharply? Assuming that there are plenty of other factors that could drag […]
Equities are expensive. It’s difficult to argue against this. But does this also mean that markets will fall sharply? Assuming that there are plenty of other factors that could drag […]
Since the low point for the equity markets during the global financial crisis in 2009, Eurozone equities have lagged their US counterparts by an impressive 300%. Why is this? By […]
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 […]
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 […]
This week was all about oil prices. After a price collapse of over 30% since the middle of June, oil lost another 6% as OPEC decided not to cut production […]
This week was dominated by the ECB meeting on Thursday. While the ECB, again, refrained from changing its monetary policy, Draghi did seem to hint at some action in June, […]
Valuation-related measures are often lousy instruments for timing the market. But that doesn’t mean they can’t hold interesting information about equity market returns. In the chart below, I have plotted […]