While markets may have seemed uneventful of late, there has been a flurry of academic activity that gets to the very heart of whether it is possible to beat the market. Though dull and esoteric on the surface three papers and a new book, all released in the last three… Read the article
Category: Value Investing
The election of Emmanuel Macron as President of France marks an important shift in the narrative around European politics: not all popular discontent in Europe can be channelled as anti-EU or purely nationalistic.
For investors, the importance of Macron’s victory may be more about what has been rejected… Read the article
Mid way through the announcement season, profits in the US, UK and Europe are coming in stronger than expected, and the momentum in analysts’ expectations has improved. The FTSE 100, buoyed by a pick-up in commodities and the currency impact post-Brexit has actually seen increases in analysts’ forecasts.Read the article
Though it may seem hard to believe, attention on policy makers has intensified. The market has delivered a vote of no confidence in the notion of negative interest rates and appears increasingly dissatisfied with the ability of monetary policy and QE to impact the… Read the article
Our big issue to watch in 2016? Much the same as it was for 2015, and for a few years before that: what happens to the equity risk premium?
The equity risk premium is the apparent return you are offered for holding equities versus a ‘risk free’ asset*. With interest… Read the article
The relationship between asset prices and fundamentals is complex. Evidence and intuition suggest that sometimes prices move for no real reason.
But even those of us who pay lip service to behavioural finance often find ourselves looking for explanations when we see the type of moves we have seen over… Read the article
At the start of May, Tony Finding and Eric Lonergan made their annual ‘pilgrimage’ to Omaha in the US to attend the annual shareholder meeting for Berkshire Hathaway, the investment company run by Warren Buffet. In the second of two blog posts, Eric discusses his key takeaways from the experience.… Read the article
Last week Tony Finding and Eric Lonergan made their annual ‘pilgrimage’ to Omaha in the US to attend the annual shareholder meeting for Berkshire Hathaway, the investment company run by Warren Buffett. While there they mused on, amongst other things, the attractiveness of US equity today, what low interest rates… Read the article
9th March 2009 might not be a memorable date for the vast majority of the population, but for many of those who work in financial markets it’s a date they will always look back on. It marked the low in the… Read the article
In October 2013, we provided an analysis of “risk parity” strategies. The specifics of this particular investment fad are less interesting, but the core issue of bond-equity correlation is central to asset allocation. We concluded at that time, that the rise in the term premium implied that long-dated… Read the article