Asking the Right Questions
Mind the gate on UK commercial property
Liquidity is defined as the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Investors in UK commercial property funds have been given a lesson in liquidity over the last ten days, as…
Central bank policy has its limits
Central bank policy remains the predominant theme in financial markets, hence when the leaders of these institutions speak everyone listens. Last week, ECB President Mario Draghi gave a speech entitled “The International Dimension of Monetary Policy”, in which he subtly warned of the risk…
Words of Wisdom from Muhammad Ali
Muhammad Ali once said that “It’s not bragging if you can back it up”. As the world reflects on the passing of a legend, and his 74 years on this planet, it is fair to say that Ali lived up to his claim “I…
The Investment Challenge: In One Chart
If I was asked for one chart to sum up the current investment environment, the below would be it. This chart shows the German yield curve, which plots the yields on German government bonds with maturities ranging from 1 month to 30 years. The…
BREXIT – “Staying friends” after a breakup
The risk of BREXIT – Britain exiting the European Union (EU) – looms large with the upcoming referendum on Britain’s membership of the EU, on June 23rd. Can Britain break European hearts while at the same time staying friends? And more importantly can Europe…
Central banks and the certain uncertainty paradox
“Uncertainty is an uncomfortable position. But certainty is an absurd one.” – Voltaire US Federal Reserve Chair Janet Yellen lifted markets midweek by pouring cold water on recent comments from a number of regional US Federal Reserve Presidents. In a speech at the Economic Club…
2016, we go again!
Well, we go again. Another year, new resolutions, new goals or perhaps for some a preference to just drift and lament what ‘they would do different, if they only had the time, or the money’. Whatever your current situation or perception of the world,…
Shut gates in high yield bonds & the slide in oil
High yield bond funds: shut gates…. While the turmoil in the commodity markets has been on everyone’s radar for the last year, the deterioration in the high yield bond market has been rumbling beneath the surface. However, on Friday it began to bubble over…
The Elusive Search for Alpha: Natural Enthusiasm
I have written recently about the importance of having a clear process in place for the evaluation, selection and monitoring of active investment managers. A well-defined process can help sidestep serial underperformers and shortlist managers actually worth considering. For those managers that make the…
Thoughts on valuation & market predictions
In May 2013, I wrote this piece on valuation – Equity Markets: Valuation is in the Eye of the Beholder – which I think might be worth revisiting for anyone querying current valuations in equity markets and the outlook for expected returns. I continue…
