The Fed Fertilized the Roses

Posted on Perspectives

The Fed Pivot – from Swagger to Stagger Three themes that took root a year ago remain familiar; sluggish global trade exacerbated by China-US trade tensions, evidence of a maturing economic cycle in North America and beyond, and stock market volatility flowing on the Trump news cycle and spiking on unheralded neck wrenching tweets. Noting […]

Read more >

Kissing the Longer Run Goodbye

Posted on Perspectives

Windfall to bondholders Interest rates globally have collapsed. US 10-year government bonds now yield 2.0%, down from 2.5% at the end of Q1 2019. Incredulously, 10-year Greek government bonds are also now yielding just 2%, despite having credit ratings that are of speculative grade. These yields look meagre until alternatives are considered. Following the US […]

Read more >

Free Riders

Posted on Perspectives

Financial markets are tight. Company valuations seem rather full. Several short-term market trends, investing opportunities and pitfalls, revolve around who gets or loses their “free (or discounted) rides”. First let’s pre-load what we mean. In a nutshell, shareholders enjoy free rides when costs that could reasonably accrue to a company, are borne by others. Changes […]

Read more >