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...
So, is your IFM in compliance with the investment oversight requirements? Are you really really sure? The financial authority have placed still more responsibility on the Luxembourg investment fund industry. This one requires investment expertise - something...
"Brexit is finally a reality. A fatally flawed referendum was followed by a disastrous political process that no responsible UK politician can be proud of. UK obtained the thinnest of all deals with the EU, essentially only avoiding a complete chaos regarding trade of...
A new stimulus round has finally taken form in EU and US. The coronavirus vaccine inoculation has started. The UK Brexit (or)deal is done. The primary financial assets, stocks and bonds are both near all-time-high, pricing in all the above. So just as evidence mount...
Financial markets should probably take the new strain of the Sars-CoV-2 rather seriously. Its higher infectiousness increases required level of herd immunity by quite a bit. More people will have to be vaccinated before we can relax. However, the widespread resistance...
Opportunities in forex markets are rare as markets are generally highly efficient. We view odds are increasing for a USD weakening potentially of some 20% eventually taking EUR/USD towards 1.45. Procyclical forces covered in "A sector rotation is building" of 17...
The good news keeps arriving regarding the CoViD-19 vaccine together with a continued increase in the infections worldwide. We can now be reasonably certain that the pandemics will be brought to heel in second half of 2021. The stock markets react as if the virus has...
The joint statement from Pfizer and BioNtech of successful phase three trials of vaccine against CoVid-1 has the potential to be the next game changing event in the SARS 2 CoViD-19 saga. We are nowhere near having the vaccine generally available. The immediate impact...
New benchmark recommendations from ESMA aim to correct the way funds are using benchmarks. Since the introduction of the Benchmark Directive in 2018, many funds have effectively removed relevant benchmarks and replaced them by money market rates. Given the strong...