Download PDF Introduction The Fed’s buying spree and general pandemic response has recently scooped up most of the media attention around central banking operations. The world of financial markets stands in awe when Jerome Powell speaks of or hints at the Fed’s next moves. However, the Swiss National Bank likes Read more…
Download PDF Introduction We continue our series on NIRP with the focus on the rates in the UK and the prospect of them becoming negative, that has kept markets professionals on their toes for the last year. Then we go on to discuss the UK outlook on the back of Read more…
Download PDF USA US indexes concluded a highly volatile week with a strong rebound on Friday after the February jobs report came in much better than expected. The economy created 379,000 jobs, more than double the consensus estimate of 175,000. January job growth was revised sharply higher to 166,000 from 49,000. The Read more…
Download PDF The oil market has been one of the most interesting to follow since the outbreak of the SARS-CoV-2 pandemic. Due to the severe reduction in travel and factory activity, demand plummeted, dragging down the price of oil. Disagreements between Saudi Arabia and Russia on oil supply caused a Read more…
Download PDF This article is part of our series that discusses the impact of low and negative interest rates on several asset classes. Here we will focus on the implications of NIRP on fixed income products. Introduction Today’s low or negative interest rates have already been experienced other times in Read more…
Download PDF USA US indexes decreased sharply during the week, mainly due to a steep rise in longer-term Treasury yields and increasing inflation expectations. The S&P 500 posted its biggest weekly drop in a month, while the Nasdaq suffered its worst decline since October, as an increase in rates is Read more…
Download PDF USA United States’ major indexes evidence was mixed, but most of them ended lower in the holiday-shortened trading week (markets were closed on Monday in observance of Presidents’ Day). This was mainly due to an increase in treasury yields that climbed to the highest levels seen in a Read more…
Download PDF At the beginning of 2020, BSIC members took a first glance at NIRP in the article “Negative interest rate policy – friend or foe?”. The piece discusses the impact of negative rates in the Euro area and the possible unintended consequences. This year we try to go through Read more…
Download PDF Introduction In his famous speech on July 26, 2012 at UKTI’s Global Investment Conference, Mario Draghi emphasized on the ‘irreversibility’ of the euro and ECB’s preparedness to do ‘whatever it takes’ to preserve it. The macroeconomic European atmosphere at the time was defined by uncertainty and financial troubles, Read more…
Download PDF Introduction One of the most enticing readings in finance starts with To the Shareholders of Berkshire Hathaway Inc. However, the investment reasoning of Warren Buffett is not only relevant in its current edition but also in the previous ones in which he has formed a long-lasting investment principle Read more…
Download PDF USA US stock indexes closed at all-time highs also this week, showing modest weekly gains. This was mainly due to expectations for a fresh round of stimulus spending, strong corporate earnings, and progress in the rollout of Covid-19 vaccines. The S&P 500 rose 1.2% for the week, closing Read more…
Download PDF Introduction From reputable Wall Street bankers and hedge fund managers to the average Joe, everyone heard of GameStop over the last weeks. How did this unprecedented phenomenon start? What cause stands at its root? How will this story affect trading and modify its rules? This article explores all Read more…
Download PDF Introduction Once again, we are approaching the end of the year, but this time, perhaps more than ever, the takeaways to bring home look exceptionally valuable: living in a world full of uncertainty due to the spread of COVID-19 pandemic represents indeed an increasingly demanding challenge for market Read more…
Download PDF US US stocks went further into top territory this week. S&P was up 14.50% YTD at 3,699.12 points; DJIA up 5.89% YTD at 30,218.2 points, recording the best monthly performance since 1987. Similarly, small-cap Russel 2000, up 13.36% YTD at 1,891.35 points, showed its best gain since inception, Read more…
Download PDF Introduction The modern economy is increasingly driven by intangible assets, such as intellectual property, brands, and networks. However, common measures of value have failed to adapt to this transformation. The path forward involves both accounting reform and improved methods to directly value intangible assets. Value strategies have worked Read more…