A Different Perspective
Asking the Right Questions
The drought is over, English premier league returns!
The drought is over at last, a new English premier league season begins this weekend. The great thing about a new season is the unfettered hope that springs eternal among all football fans, whether their club is in the lower leagues or in the upper echelons of the Premier League. When you are a Liverpool fan, you tend to live in a perpetual state of hope, an ingrained belief that one day the club will be restored to its former glory, the “bastion of invincibility” that Bill Shankly built and was extended by Paisley, Fagan and Dalglish. Shanks would be turning in his grave at the thought of his beloved Liverpool going 25 years without a league title. Read More
Market Recap: Week of July 27th 2015
Market Recap
Global equity markets were in the red last week, with the sharp slide in commodity markets providing a worrying signal on the outlook for global growth. In Europe, the FTSE Eurofirst 300 closed down 2.77% for the week, similar to the declines experienced across the major US equity indices. China’s Shanghai Composite Index of mainland shares bucked the trend, rising 2.87%, with the market closed on Friday when weaker than expected PMI data was announced. Read More
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 to believe that valuation, like beauty, is highly subjective, and in the short term the tendency for the crowd to crave the same thing will be the driving force in markets. This is why markets are so unpredictable, particularly over short time horizons. Read More
Market Recap: Week of July 20th 2015
Market Recap
Global equity markets recorded strong gains last week, buoyed by the perceived end to the Greek crisis, as the Greek government conceded to the demands of their creditors to remain in the single currency. In Europe, the FTSE Eurofirst 300 closed up 4.25% for the week. Read More
Banking Inquiry and the Celtic Tiger Villain
Two well-known villains were back in the media last week, making headlines for different reasons. Lance Armstrong was in France to ride the Tour de France route as part of a charity race to raise money for leukemia research, while at home in Ireland, the chief Celtic Tiger villain, Bertie Ahern, appeared before the Banking Inquiry. Read More
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 Google rose 16% on Friday after reporting better than expected second quarter earnings, $6.99 Earnings per Share (EPS) versus the consensus estimate of $6.71. This isn’t some speculative tech stock, this is one of the largest companies in the world. The 16% jump added $65 billion to the market cap of Google, the biggest ever one day increase in market cap. After the rally, analysts rushed to increase their price targets. Read More
Market Recap: Week of July 13th 2015
Market Recap
Global equity markets were mixed last week. There were strong gains in Europe on the prospect of a deal being reached between Greece and its creditors, as the Greek government appeared ready to concede to save their position in the single currency. The German DAX index was the best performing index, up 2.33%. US equity markets were relatively unchanged while the major indices in Asia were more mixed as the volatility in the Chinese equity market dominated the headlines. Read More
First Irish UFC Champ: Inflated Egos in Business v Sport
The world of business and finance is known for being dominated by inflated egos, where the role of luck in successful outcomes is always described as skill. This is a world where the reason for a merger can be as simple as the Chief Executive looking to feed their ‘mine is bigger than yours’ syndrome. At the heart of any financial crisis or company failure you’ll be sure to find runaway egos, powered by a delusional self-confidence. Read More
Market Recap: Week of July 6th 2015
Market Recap
Global equity markets were drowning in a sea of red last week as the major European equity indices sold off sharply on Monday, following the weekend’s announcement by the Greek government to hold a referendum on the deal being offered by its creditors. The FTSE Eurofirst 300 closed down 3.54% for week, while the German DAX index lost 3.8%, with the index now down 11% from the high reached in April. Read More
All Eyes on Greece, into the Known Unknown!
European equity markets have opened sharply lower following a ‘No’ vote in the Greek bailout referendum yesterday. Yanis Varoufakis, Greece’s finance minister, has resigned to help the Prime Minister reach an agreement, after certain parties requested his ‘absence’ from the meetings. “I shall wear the creditors’ loathing with pride” he wrote in his resignation blog post “Minister No More”. The man has panache! Read More
