A Different Perspective
Asking the Right Questions
Government bonds signal liquidity warning….
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. Read More
Equity market valuations are “quite high”
Central bankers have not covered themselves in glory in the past when timing turning points in financial markets and real estate, and hence when they should take away the punch bowl. Read More
Market Recap: Week of May 4th 2015
Market Recap: stronger Euro hurts European equities
Most of the major equity indices were in the red last week, following weaker than expected economic data, most notably weak first quarter GDP data from the US and the UK. Read More
UK Election: Will the real Ed please stand up?
The UK general election will come to a head this week with voters going to the polls on Thursday. The uncertainty around the outcome weighed on Sterling last week, with volatility against the Euro and the US dollar reaching levels last seen in 2011. Read More
Ben Bernanke v Wall Street Journal
Former Fed Chairman Ben Bernanke has been making waves since his retirement from the US Federal Reserve in 2013. While his easy monetary policy stance earned him the nickname “Helicopter Ben”, at $250,000 a speech Bernanke is bringing easy money to a whole new level. Read More
Down to Business: Mortgage Arrears Crisis
There is a first time for everything and on Saturday I proved I really do have a face for radio. I was part of a discussion on the mortgage arrears crisis on Bobby Kerr’s “Down to Business” show on Newstalk. While we only had time to touch briefly on what has become a complex subject, the podcast link is “The Mortgage Arrears Crisis” if you wish to listen.
CFA Magazine May/June Edition: A Winning Tactic
The crowning of Chelsea as Premier League champions over the weekend ties in nicely with the release of the latest edition of the CFA Institute Magazine and the inclusion of an article I wrote earlier in the year: “A Winning Tactic: To Cope with More Volatile Markets, Take a Lesson from Football Managers”. Read More
The Mechanics of Fixed Rate Government Bonds
Primary Market: When countries issue new bonds they are effectively borrowing from investors, in what is known as the primary market. Buyers of newly issued bonds lend capital to governments in exchange for a fixed payment, referred to as the coupon, up to a specific date referred to as the maturity date. Read More
Market Recap: Week of April 27th 2015
Market Recap
Global equity markets moved higher last week as earnings announcements in the technology sector were received well, with investors in Amazon and Microsoft seeing big gains. The movement on some of the technology shares over the past few weeks on the release of one quarter of earnings once again highlights the short term focus of many market participants. Last week, shares of Amazon rose 15% in one day following their latest quarterly release, while the previous week shares of Netflix rose 18% the day after their quarterly announcement. Read More
The Importance of a Clear Exit Strategy
Integral to managing money is having a clear understanding of the market environment and being sure on where the exit is. Read More
