The return of inflation has taken a lot of people by surprise, although it should not have done. Worryingly, even central banks have acted quite surprised by the abrupt rise in prices, when they should have expected it.Continue reading
Tag Archives: investing in equities
Beware value traps when hunting for stock market bargains
European stock markets recouped all the ground lost since the February 24 Russian invasion of Ukraine, but investor optimism may be misplaced.Continue reading
Four reasons why the stockmarket rally is not over
Those who worry that the extraordinary stock market rally will come to an end in 2022 may be worrying too soon: equities could still power ahead, and particularly so in Europe.Continue reading
Inflation is not transitory after all
“Transitory” is the preferred word to describe inflation these days. Central bankers love it, because it means they can continue their easy money policies. Investors love it, because it means the markets’ party goes on.Continue reading
Market turmoil tests the power of central banks
The turmoil we are currently seeing in stock and bond markets is just one battle in the war that has been going on in capital markets for a long time: debt versus equity versus central banks.Continue reading
As goes January so goes the year? Earnings surprises underwhelm
The US earnings season is halfway through, and on the surface, it is full of good news. And yet, far from being cheered up by this, markets have been going down. Why is that?Continue reading
Young retail investors do not care about ESG; not really
One of the most widely accepted “truths” about ESG (environmental, social and governance) investing is that young investors are very keen to put their money into companies that show strong ESG credentials.
Entire marketing strategies have been built around this idea. But what if, in fact, this “truth” turns out to be no more than myth?Continue reading
Fast and furious rally risks triggering the Sell signal
The markets rallied so fast in November that bullish investors risk pushing the needle towards the “Sell” signal, according to Bank of America’s indicator.
When panic selling is over, stocks could benefit more than bonds
The panic buying of essential items around the globe – from food to, fittingly, toilet paper – sparked by the spread of the COVID-19 coronavirus has been mirrored by panic selling in capital markets. It’s almost as if investors were taking cash out of stocks and bonds to buy whatever food, hand sanitiser and toilet paper they could get their hands on.
Pessimism in global financial markets has reached heights not seen since the dark days of the great financial crisis of 2007-2009, which this current crisis threatens to overtake in depth and significance. But, as news about rapid tests for COVID-19 and resilience to deal with the virus begin to multiply, could investors hope for a bottom in the capital markets’ selloff?
Record inflows into bonds as Bull-Bear indicator approaches sell signal
The first year of the new decade begins with markets in a much more exuberant mood than at the beginning of 2019. Some of the world’s most important stock markets reached record highs in the last month of 2019 — but do investors feel that markets have peaked?