Filipe R Costa

Fund Manager in Focus – Leon Cooperman

Fund Manager in Focus – Leon Cooperman

9 mins. to read

“The way to be successful is do what you love and love what you do…I get paid normally a lot of money for basically doing something I enjoy doing. And what I enjoy is to hunt—finding something somebody else doesn’t see, making a bet and having Mr. Market prove me right.” ― Leon Cooperman Living…

Draghi still has ammunition in his bazooka

Draghi still has ammunition in his bazooka

7 mins. to read

Earlier in the year the ECB announced its own asset purchase programme to reflate the Eurozone economy. Investors received the news with exuberance and drove equity prices to historical highs. But so much has changed since that moment, such that what looked like the best plan in years is now seen as mere routine, embraced…

Central Banks Have Lost the Inflation Link

Central Banks Have Lost the Inflation Link

7 mins. to read

For the last three decades, central banks have been concentrating their efforts on fighting two gaps – the output gap and the inflation gap – being mandated to throw everything they can at the economy in order to correct any major aberrations. While managing the first gap is the primary goal of government, managing the…

Big In Japan

Big In Japan

9 mins. to read

As seen in this month’s issue of Master Investor Magazine. “With the strength of my entire cabinet, I will implement bold monetary policy, flexible fiscal policy and a growth strategy that encourages private investment, and with these three policy pillars, achieve results” ― Shinzo Abe, 2012 16th December, 2012 It was the night of December…

UK Sentiment Is Born in the USA

UK Sentiment Is Born in the USA

6 mins. to read

For the last few decades, much has been debated regarding the importance of psychology in the equity markets, more precisely in the formation of prices. As I have claimed many times before, not even with a grain of salt can one accept the idea of investors being rational and markets efficient. Many academic studies show…

Measuring Investment Performance

Measuring Investment Performance

10 mins. to read

The Risk-Reward World Investment is all about risk and return. Risk-averse investors want to maximise return for incurring a given level of risk or, put another way, minimise risk incurred for a given level of return. Everything gravitates around the risk-return trade-off, and professional investors and academics have devised ways of measuring this trade-off to…

It Still Pays to Invest in Europe

It Still Pays to Invest in Europe

4 mins. to read

At a time when the S&P 500 is celebrating a six-year rally, which has seen it clock up gains of more than 180% since its 2009 low, it is understandable that investors should start to ask when this bull run will run out of steam. While economic improvement has been substantial since the financial crisis,…

Desperate Measures in China

Desperate Measures in China

2 mins. to read

The Chinese saga is only getting started, as the country surprises the markets with ever more desperate measures. After spending almost $150 billion trying to contain a stock market collapse and declaring short selling as “malicious”, China is now devaluing its currency by the most in 20 years, as exports dropped 8.3% in July. While…

Pension Deficits Will Turn Around

Pension Deficits Will Turn Around

6 mins. to read

It may be an exaggeration to claim that the current pension deficits of UK companies are entirely the result of the monetary policy action followed by the BoE, but it is not that far from the truth. In March 2011 the total deficit on the books of FTSE 350 companies was £20 billion. One year…

BoE Delays Rate Rise but Time Is Running Out

BoE Delays Rate Rise but Time Is Running Out

7 mins. to read

In its first triple release, dubbed “Super Thursday” – a triple bill of data comprising the MPC monetary policy decision, the minutes from the decision and the inflation report – the Bank of England kept its main interest rate unchanged at 0.5pc. While the decision was widely expected, there are a few points that are…