Investors attempt in the medium/ long term to take advantage of the extra returns generated by participating as shareholders in the selected companies of their portfolios.…
joanna
In the aftermath of dismal year 2022 due to the well known reasons (FED, Ukraine, Covid/supply chains) and of the end of year tax selling…
The USA, as well as the world, equity markets are at very important crossroads. They are heavily dependent on volatile inflation, interest rate and on…
Can investors endure more losses ?
Will they be rewarded ?
Can investors endure more losses ?
Will they be rewarded ?
Can investors endure…
The FED missed the inflationary situation calling it for a long time a transient phenomenon. It was a structural one. The war in Ukraine exacerbated the…
Financial assets have some great advantages like the ability to diversify and the possibility to engage in partial sales to finance desired expenses. No doubt, Liquidity…
A)The expectation of FED chairman Powell speech at Jackson Hole was that it would provide a determination to fight Inflation at the expense of employment…
Perfect storm The FED made a major mistake underestimating inflation. Interest rates should have increased earlier. Now it is tightening aggressively. We experience the worst…
Inflation and the Supply curve A few thoughts on the markets : Negatives : A) Waited to comment on the April inflation numbers. Higher at 8.3 pct for…
The first quarter of 2022 reinforced the view that a diversified portfolio should strategically include most asset classes and can prove beneficial during hard times.…
A critical evaluation of the consensus views.
The first quarter of 2022 reinforced the view that a diversified portfolio should strategically include most asset classes…
Year 2021 has been very kind to the believers in the equity culture who had the courage to stay invested during the impressive multi year…
The effects of the pandemic on the economy have continued to diminish, but risks to the economic outlook remain. Progress on vaccinations has limited the…
I) The reason growth stocks suffer more with abruptly rising interest rates.
The valuation of every investment should correspond to the present value of future…
Very often we hear and read comments on the necessity to engage in excessive or radical market timing.
Some old truths :
A)…
The issues of rationality and the attainment of equilibrium (as well as its stability and uniqueness ) in the macro economy and in capital markets…
2020 in retrospect
....It was a very difficult year !
Indeed, it was a very difficult year (to paraphrase the song) for mankind, personal lives, relations, business…
Traditional and Alternative Investments
a) The recent revelation of the Madoff scheme dwarfs the losses at Societe Generale, Sumitomo or Barings…
Part Α: Today’s Problem
The great classical economist D. Ricardo is regarded as the father of the Equivalence Principle: When the Government borrows in…
“Park Avenue apartments belong to the optimists”
We would like to repeat our longer term view :
Valuations relative to bonds and cash are compelling.…
A quarter that brought a lot of pain to the Bears
At the end of the first quarter of 2009 our report posed the question…
The Mother of all Recessions: All Sectors and Regions Stock market’s predictive Ability
a) It appears that we are experiencing the worst recession since WWII.…
A nice thing about Bear markets is that they do not last Forever.
a) Do we witness a bull rally, a bear rally or a…
A) We experienced the worst stock market performance in January ever, the worst last five months ever, the worst year along 1931 and 1937 and…
Focus on the problems arising from pricing illiquid assets at market distressed prices
a) September was a month that all investors would like to forget.…
Strategic and Tactical Allocation for 2011
We all know that in financial Investments : “The rear view window is much clearer than the front…
In our end of year 2008 report we predicted that the markets might rebound from an extremely oversold condition. Regression to the mean is a…
The death of Business, Finance and of Equities? OR
The Greatest Buying Opportunity of the Last 60 Years???
a) Since 1900 the world economy has…
Our Specific Experience
In early 2020 we had a unique traumatic experience not seen for over a century : the deadly pandemic of COVID 19.…
The recent great crisis reminded us of certain truths and lessons.
A) Do not bet against the human race.
Progress of humans in science has…
Historically, over the very long term, investing in value stocks has delivered better returns than investing in growth stocks (MSCI defines value as stocks which…
“In the short run, the market is a voting machine, but in the long run it is a weighing machine.” – Benjamin Graham
Equity investors have been rewarded
Analysing long term returns of different financial assets it becomes clear that stocks have outperformed bonds and cash. Furthermore, the…