Download PDF There’s a Yiddish proverb fittingly saying: “interest on debts can grow without rain”. How can this be? In an ultra-low-rate environment, debt has become ubiquitous to sail through the COVID-19 pandemic and so has the fear related to its sustainability. Countries have taken the center stage in the Read more…
Download PDF What is a SPAC? A Special Purpose Acquisitions Company (SPAC) is a shell company set up by investors with the only purpose of raising money through an IPO in order to eventually acquire another company. They are also known as “blank-check companies” since they generally don’t have a Read more…
Download PDF USA It was a turbulent week for equities due to a flare-up in global coronavirus cases and to the fact that President Joe Biden will seek an increase in the tax on capital gains to 39.6% for those Americans earning more than $1 million to fund education and Read more…
Download PDF USA Volatility is at lowest levels since pre-pandemic, indeed, the stock market ended a pretty stable week. Major indexes rose slightly mainly due to upbeat economic data and the beginning of the US earnings season, the financial sector kicked off with positive results from Wells Fargo, Goldman Sachs, Read more…
Download PDF As we said in the first part of the article, the market continually expands and contracts, going through periods of expansions, peak, decline and recovery. This, consequently, affects all type of assets, especially stocks that go through 4 different cycles. In the previous part, we discussed two of Read more…
Download PDF As of the end of March, financial news worldwide began covering extensively the unraveling of Archegos Capital Management – a family office whose way of conducting business de facto resembled a hedge fund. The speed which characterized this process of wealth destruction and the spillover effects that it Read more…
Download PDF Introduction While it is true that market conditions change, there is an underlying cyclical movement of capital through markets, sectors and individual stocks. The market is simply a function of supply and demand, with price as the final arbiter. Factors that affect supply and demand vary at different Read more…
Download PDF IPOs volatility Initial returns of initial public offerings are usually large, averaging 15.1% over the 1965–2004 period (excluding the dot.com bubble interval that would further boost IPOs returns). For investors that can buy IPOs at the offer price, IPOs are a good short-run investment. However, we should care Read more…
Download PDF USA US indexes ended the week higher, one of the reasons seems to be the minute of the Federal Open Market Committee, which spread positivity on the market. The S&P 500 and Nasdaq Composite kept their upward trend with the latter approaching the 14,000.00 level, a barrier surpassed Read more…
Download PDF USA It doesn’t take long for the stock market’s mood to change, and the past week proved the point as the market quickly turned up and the majority of indexes closed Thursday with considerable gains. The Nasdaq composite and S&P 500 were respectively up 2.71% and 1.17% over the Read more…
Download PDF Introduction Abundance of liquidity thanks to the coordinated stimulus injected by the world’s major central banks during the past year has triggered a renewed interest in gold due to its role of store hold of wealth. This article is part of our series on the impact of NIRP Read more…
Download PDF Introduction Even though electric cars today only account for nearly 3% of the global car sales, companies have for a long time acknowledged that only by starting to invest now in a shift to EVs, they will have a chance to survive in the years to come and Read more…
Download PDF Introduction A specter is in the horizon for US investors: the specter of inflation. As the fed policy objectives shifted toward allowing a brief term inflation “overshoot” the 10-year and 5-year breakeven inflation rates, the differential between TIPS and nominal bond yields, have reached new heights in the Read more…
Download PDF USA Another whipsaw week in the American markets as investors have weighed signals that the U.S. economy is primed for a spell of rapid growth against concerns about rising bond yields and over concern on the Suez Canal debacle. Wall Street’s main indexes broadly rose on Friday with Read more…
Download PDF Introduction We continue our series on the impact of negative interest rate policies (NIRP) on various asset classes by looking at equities valuations this time. The years after the Great Financial Crisis have brought secular macroeconomic, policy and structural shifts, which have resulted in an unmatched collapse in Read more…