Asking the Right Questions
Google: $90 Billion more valuable in one week!
“Sorry, love it at forty. It’s an insult at fifty. Their analysts don’t know preferred stock from livestock…” Gordon Gekko, Wall Street (1987) The share price of…
The Psychology of Markets & The Beard Trend
The nature of markets, in particular the herd mentality often exhibited, flies in the face of the efficient market hypothesis and the notion of an efficiently priced market. Efficiently priced doesn’t necessarily mean fairly priced; as we’ve seen over time, asset prices can move…
Adding a dynamic allocation that can adapt to the changing environment
As I think about the outlook for the global economy and financial markets in the year ahead I can’t help but bring it back to a sporting context, in my case football. In preparation for every football match a manager sets out his team…
IMF downgrades economic outlook
There was a lot of hype last week around the IMF’s release of their latest World Economic Outlook (WEO), in which they downgraded their forecast of GDP growth for the world economy. Entitled “Legacies, Clouds, Uncertainties”, the IMF revised downward their projection for this…
Equity Markets: Valuation is in the Eye of the Beholder
With many of the major equity indices at or near record highs it is natural to ask whether equity markets are overvalued. First of all valuations differ dramatically by geographical region and second, one’s estimate of fair valuation is to a large degree subjective….
