Investment Talks

Friday Investment Talk: Valuations, Growth to Value Transition, Gold and Healthcare Stocks

Are markets overbought? The narrow bull market in FAANG and some other technology stocks has led to concern among analysts that stocks are out of sync with the economy. We explore how interest rate assumptions affect analyst pricing in discounted cash flow models and lead to inflated asset prices.  A discussion of the opposite case Read more ➝

FIT COVID EU BREXIT

Friday Investment Talk: Brexit and EU during COVID, US Fed Actions, Inflation and the Summer Market

As Europe reopens, UK’s BOE announces the economic recovery will be ‘V-shaped’. Tourist travel seems to be picking up and markets (especially tech stocks) reacted well – as is usual in this seasonal bullish period. Q2 earnings reports are on the horizon, with stocks priced for perfection.

Fiscal stimilus is ending in the US as government transfer reciepts and other forms of unemployment support expire. As elections come to the forefront and COVID cases increase further aid is likely. The effects on inflation will be muted until employment levels come back and wages increase.

COVID and gold

COVID Emergency Funds, the Price of Gold, and the Stock Market

Having one’s cake and not eating it. When I came to Russia, my first summer was hot and sunny and I took to cycling, exploring the city’s cycle paths, one of my favourites being the one that runs along Bolshaya Nikitskaya up to the Garden Ring. For those unfamiliar, the Garden Ring is a ring Read more ➝

Seasonal Strategy: April Bounce Helps

Usually at this time of the year, early-April, stock markets would have had a nice seasonal rally. Well, there is nothing usual about the market or the economy this time.

As of today, the new bear market closing lows were on March 23. From their highs DJIA was down 37.1% and S&P 500 was down 33.9%.

Since then the market has rebounded to trim those losses.
Now we look to position for the worst months of the year ahead.

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US markets year to date (YTD)

April Outlook: Bear Market Bounce

Everyone seems to be hoping for the stock market to find support here, already so much damage has been done.

A great deal of uncertainty remains for the world economy and health crisis. April looks like a good time for a bear market bounce.

Further out, investors should experience a rough ride in the market this year with quite a bit of choppy trading.

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market vol rollarocaster

Seasonal Update: Tech and Utilities

Large daily moves in both directions of 2-5% and huge intraday swings have taken a toll on markets and psyches. But the February 28 low has held through this week’s wild swings.

According to sector seasonality, there are two sectors that begin their seasonally favorable periods in March: High-Tech and Utilities.

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US world focus

Market Outlook: Q1 2020

With worldwide central bank rate cuts at record highs and inflated SPX valuations, Wall Street earnings estimates for Q1 2020 look excessive. This is a typical sign of last cycle bull market. Mega-caps are able to outperform and hold earnings margins, but can they continue?

We review what JP Morgan and BAML analysts have to say about the current state of the US economic landscape. Why would they make top recommendations in Energy, Small Caps, Industrials and Transportation for 2020?

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