Economic Indicators Archives - Page 12 of 15

Investment lessons from natural evolution: On bulls, bears, cold turkey and cockroaches

January 6, 2017

During the past nine years equity investors have become addicted to positive returns. The early days allowed for easy flirting with the habit. After all, corporate earnings were growing and central banks subsidised the fix. In 2015 the trend started to revert and ever since, in order to keep denying the addiction, investors have been … Continued

The Biotech anomaly

December 2, 2016

In the low-growth environment we are currently living in, one should expect that fast-growing sectors command a premium. However, what we have recently observed is a rush to low-growth, high-dividend stocks (so-called “bond proxies”) in a capitulation by investors crowded out of the bond market by central banks. These yield-starved investors have reluctantly bought the … Continued