Lately, the US Federal Reserve has acknowledged having misjudged the timing, size and staying power of inflation and consequently accelerated monetary tightening. Should the broader finance market have a similar moment of introspection, the ongoing asset re-pricing...
Cryptos have seen significant losses. Readers of this column (blog Mar 2021. Jan 2022) will know that we are not the slightest surprised. We do, however, believe it is necessary to outline how the movements in cryptos are simply part of something much larger. Pricing...
Into a portfolio squeeze, eye’s wide shut? Liquidity risk to investors balance sheet is on the rise. Should inflation stay sticky and Central banks accelerate monetary withdrawal - will investors then find themselves in a double whammy, caught between skyrocketing...
An invisible portfolio risk To most market participants, financial risk is like talks about the climate crisis, its only “real” when the sea level reaches your living room. Macroeconomic risk is now rising as Central Banks are stepping up efforts to dismantle 13...
Financial market risk is rising. Central banks are stepping up efforts to dismantle 13 years of massive disaster stimulus programs. Portfolio risk is increasing, as stocks and bonds from start 2022 move in sync, a risk only visible to the naked eye when both drop...
Central bankers and the untractable problem of QE This year’s meeting of the world’s central bankers in Jackson Hole takes on a particular importance. Central banks face the unique challenge of beginning the long goodbye to the QE programmes. Nervousness in the...
Cryptocurrencies are hot! Upon closer inspection, they are a bad idea coupled with a brilliant technology. The technology will be broadly applied and even accepted by central banks. Existing cryptocurrencies are less likely to get this seal of approval. For good...
Inflation is getting a lot of airtime these days. Bond yields are increasing rapidly, and much ink is spilled on guessing whether inflation or a rapid return to growth is the culprit. Inflation will affect all other asset in not-so-simple ways. Asset allocation...
Early last week we recommended investors to reduce equity holdings. Many investors have a tendency to focus only on one set of data when making allocation decisions. We look at four different groups of data, and we see sufficient movement in several of them that we...
From the point of view of the financial markets, 2020 was a good year. The sector praised itself for its ability to “see through” to the moment where the CoviD-19 pandemic is behind us. Many things were, however, unchanged despite the pandemic. When the history books...