It’s always easy to spot bubbles in asset prices after they have burst. Doing so beforehand is more challenging. However, global stock markets could be severely mispriced at the moment and there may be the potential for a bursting bubble in the medium term. The main reason for this is a lack of concrete data…
There are hundreds, if not thousands, of investment strategies in existence which proclaim to be the best for maximising returns. From broad policies such as value or growth investing, to more quirky approaches such as astronomical cyclical analysis, investors are spoilt for choice when it comes to selecting a set of rules or procedures on…
The European banking sector made gains earlier this week following the first round of the French election. Investors seem to be upbeat about the prospects for pro-European candidate Emmanuel Macron. If he wins in the second round against Marine Le Pen, the consensus among investors seems to be that the EU and the Euro could…
The focus of this article is to look at the investment potential in Brazilian blue-chip banks. But let´s quickly recap the macro view around Brazil, which as always, is dynamic. The current market consensus is that even after the strong rally in the Brazilian equities (+20%) and currency during the last 12 months (note the…
If the last year has taught me one thing, it’s that assumptions should never be made when it comes to politics or the economy. For example, the EU referendum and US Presidential election were supposed to deliver outcomes which differed wildly from the actual results. With a general election now less than seven weeks away,…
Being able to put emotions to one side is possibly the most difficult part of investing. Accumulating knowledge and capital is within the reach of most people. However, being entirely logical while also taking subjective stances on companies is tough. It’s all too easy to allow a positive or negative experience with an industry or…
As my colleague John Kingham recently wrote in the March edition of Master Investor Magazine, “high yield stocks do not always deliver the yield you were hoping for.” This refers to the dreaded “yield trap”, whereby companies which have seemingly large dividends relative to their share price then go on to disappoint investors by cutting…
Less than three years ago, Tesco (LON:TSCO) was in dire straits. It had recently announced a possible overstatement of profits, its sales growth was negative and its outlook was downbeat. Fast forward to today and the company’s potential for rising profitability as well as an increasing share price is high. The catalyst for this revolution…
CPI inflation may have held steady at 2.3% in March, but it is likely to cause intense pressure for UK consumers in future months. A rate of 3%+ looks likely as a weak pound gradually filters its way through into higher costs for UK consumers. Looking ahead, things could therefore get worse for UK retailers.…
It’s all about the Enterprise Value For the last few days, you would have probably seen headlines such as “Tesla is worth more than Ford – and GM is in sight” and people arguing about whether Tesla is worth being valued at the same level as GM and Ford. All those discussions highlight a major issue…
