With global markets declining and most defensive stocks overvalued, it’s hard to find cheap stocks inside the Consumer Staples, Utilities and Health Care industries.
Historical data points toward increasing odds of recession amid growing inflation numbers, and the current profit projections for 2023 are still very optimistic and sitting on not-so-low valuations.
One of the most puzzling observations reported by academics is that the equity premium comes mostly from overnight returns.
A mix of high-flying and persistent inflation, rising interest rates and increased odds for a global recession has turned markets upside down and reverted most of the gains stocks accumulated after bottoming in March 2020.
The value of assets of exchange-traded funds worldwide has grown markedly over the last 20 years, from $200m to more than $10trn.
One of the most important monetary-policy tools is communication. Managing expectations is a skill that was once widely used by the European Central Bank but it seems to be lacking now.
After two decades of underperformance, we are seeing the return of value as an investment strategy. Buying conservatively valued companies seems a better play than buying promises of elevated future profits.
It’s been a pretty bad start for the year on the markets. Filipe R Costa asks whether this is a buying opportunity or a warning.
This week the S&P 500 closed on a positive note and put an end to a multi-week losing streak that almost led the index into bear territory.
Financial markets are on a roller coaster this year. On the one hand, we have very unfavourable macro and geopolitical conditions. But, on the other hand, the ‘bulls keep buying the dips’.
