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Market Analysis

  • Canada’s interest rate hikes in 2019

    Canada’s interest rate hikes in 2019

    For the moment, Canada’s economy continues to gain the rewards of strong US activity and should see a reputable 2.5% growth rate overall for 2018. Moreover, it could be seen that Canada will grow at a slightly slower pace in terms of growth in...

  • Is the US at its peak?

    Is the US at its peak?

    Ten years after the global financial crisis, it is safe to say that the US has come out in a far stronger position than most other major economies. Output is up 23% from the 2009 gutter, while there are over 20 million more people in the...

  • What should be done to safeguard the European bond market?

    What should be done to safeguard the European bond market?

    The completion of Greece’s financial rescue programme this summer has been highly regarded by many policymakers as the end of the Eurozone crisis. However, the current confrontation between the European Commission and Italy over fiscal rules has...

  • Why the reinvestment rate risk matters

    Why the reinvestment rate risk matters

    It is quite common for investors to view the risk of an underlying bond investment from different angles, be it credit risk, interest rate risk, market risk, among others. The term risk can be easily interchanged and at times misused, as it is not...

  • European high yield debt, worth the dip?

    European high yield debt, worth the dip?

    European high yield (HY) debt over the past years has emerged as one of the best performing assets within its class. The reach for yield quarter on quarter was one of the reasons why this niche sector continued to tighten and appreciate in value,...

  • Does higher economic growth lead to higher returns?

    Does higher economic growth lead to higher returns?

    Most investors/analysts view the economic growth of a country/region as a good predictor of stock market returns, and this perceived correlation between growth and returns can have a big influence on their asset allocation decisions. Empirical...

  • Understanding asset classes and how they impact portfolio returns

    Understanding asset classes and how they impact portfolio returns

    Investing and risk are commensurate and synonymous with one another. The returns on an investment, and more importantly, the volatility and risk on an investment, is what ultimately distinguishes an asset class from another. In the financial...

  • A parallel currency?

    A parallel currency?

    As the Italian economy halts yet again and as the budget stalemate with its European partners intensifies, the idea of a parallel currency for Italy is again being heard around. The basic idea of this parallel currency would be to have the Italian...

  • Currents of disruption: a closer look at Asia

    Currents of disruption: a closer look at Asia

    A continuous process that knows no geographical or sectoral bounds is disruption. At the heart of this transformational change is undoubtedly Asia, but what is different today is the absolute pace of disruption and the scale and depth at which its...

  • Poland's confrontation with the European Union

    Poland's confrontation with the European Union

    Back in October 2015, the Law and Justice Party, abbreviated to PiS, won Poland’s parliamentary election by a huge majority. Three months into their governing, PiS passed a legislative amendment that gave them the right to choose the replacement...

  • Market risk within the context of a portfolio

    Market risk within the context of a portfolio

    Investments, whichever shape they take, inevitably involve an element of risk. I say inevitable as it is the degree of risk which is commensurate with the return on an investment. Investments may take varying forms, and even the 'relatively'...

  • Turkey’s Central Bank stays on hold

    Turkey’s Central Bank stays on hold

    Given the 625 basis point (bp) front-loaded hike in September, the ongoing strengthening of the lira due to Pastor Brunson's release and subsequent signals from the US on lifting some sanctions have all been firming optimism that the geopolitical...

  • An introduction to bond investments

    An introduction to bond investments

    A bond, put simply, is a loan taken out by companies which is financed by the general public. It is classified as a fixed income investment, which enables companies to borrow funds for a defined period of time (known as the term to maturity) at a...

  • Where are the equity markets going from here?

    Where are the equity markets going from here?

    Equity markets are now oversold (particularly Europe and Emerging markets), meaning that a technical rebound should occur soon. The question is that of the duration of the rebound. Earning season will be crucial to determine whether equity markets...

  • BAE Systems PLC – A stock that trades in GBP

    BAE Systems is a global defence, aerospace and security company employing around 83,900 people worldwide. Their wide-ranging products and services cover air, land and sea. They design, manufacture, upgrade, and support combat and trainer aircraft...

  • Asset classes and investment options

    Undoubtedly, a successful investment strategy is a result of hard-thought process which every individual investor plans out. Investing without any form of plan, targets, goals or policies could mark the recipe for disaster. Planning is key,...

  • Alibaba – A new name on our equity list

    We started coverage of Alibaba with a Buy recommendation and a price target of $225 on the stock. We like Alibaba for multiple reasons, however, the main reasons for our interest in this company are as follows: 1. Strong fundamentals. Strong free...

  • US trade tariffs vs the EU (German) model

    Faithful to his promises made during the electoral campaign, President Trump in the last months gave the go-ahead to the application of tariffs on imports from EU, China, Canada, Mexico and Japan. Although on the China front, the trade war seems...

  • Apple shares continue making shareholders proud

    Apple reported very promising results for Q3 2018 (their financial year ends in September). Factoring in the results into our model, we increased our price target from $190 to $208. However, we changed our stance from Overweight to Hold. Given its...

  • Credit markets recoup but pressures persist

    Credit markets recoup but pressures persist

    Credit markets continue to be pressured by a more hawkish tone by leading Central Banks, but also by the wider picture of geopolitical tensions, such as the continued uncertainty surrounding the trade war preposition. In July, to a certain extent,...