U.S. equity and bond markets have staged a remarkable comeback since their demise in March when lockdown measures were imposed to address the spread of the coronavirus. The recovery in financial markets has also spread globally on optimism over the reopening of economies as well as...
- Common perception: Supply is too high, and demand is too low.
- Reality: Mechanics related to the contracts that govern the purchase of oil exacerbated the impact of the price decline.
While the common perception is true, the reality is more nuanced. Today we look at that...
This week’s article answers some of the questions we have been asked about the CoronaVirus and its impact on your investment portfolio.
How have markets reacted to the virus?
Stocks initially declined dramatically on the spread of the coronavirus. Riskier bonds declined in price...
Asset prices declined: This past week, we observed a broad-based decline in asset prices - both bonds and stocks experienced sell-offs. Any observed asset price increases were likely the result of positive firm specific events or news. What is to blame for the decline in prices? When is a...
It was a little over a year ago on Sunday March 12, 2017 that a colleague of mine, Eugene Stanley, wrote an article titled, “Barbados – A classic case of a falling angel”. The writing was on the wall from then and here we are today. In a surprisingly aggressive start to her career as Prime...
US Economy:
The Federal Reserve (Fed) raised interest rates 3 times in 2017, each time adding 25 basis points to the lower and upper end of the range. As at December 13, 2017, the Fed’s benchmark interest rate range was 1.25% to 1.5%. The Fed has projected 3 rate hikes in 2018 while...
June 23, 2016, will be forever etched in our memories as the day England chose to leave the European Union(EU). It was a move that sent shockwaves across markets all over the world. Earlier that same day, the market predicted that they would remain in the EU, and stocks, commodities and...