Market Thoughts Archive
Posted on November 29, 2015
Oil companies (and oil dependent countries) have seen better times: thanks to the continuously falling crude prices they announced layoffs and they are postponing important investments. These may be hard times for them, but one thing doesn’t seem to change: they are still paying big amount of dividend to the stockholders. They have a good reason for that.
Posted on November 22, 2015
Foreign central banks and asset managers are preparing to increase their exposure to yuan denominated bonds, as the IMF will probably approve the inclusion of Chinese yuan into its currency basket in November. Based on market forecasts, yuan will get an initial weighting of 14% in the Special Drawing Right (SDR) basket, which currently make up of the U.S. dollar, euro, the British pound and the Japanese yen.
Posted on November 15, 2015
China has surprised the world when changed its population control policy and has decided to end its 35-year long one child per family rule. It might seem strange that China’s new policy made such a shock when we are in the middle of the third quarter earnings season, the oil price tumble and the European migration crisis but if we take a closer look at it, we understand that this decision project one of the most important problem of the upcoming years.
Posted on October 25, 2015
After 5 years of negations, Japan, the United States of America and 10 other countries signed the treaty of Trans-Pacific Partnership (TPP). This is the largest economic (trade and investment) agreement of human history: the TPP – if local legislations ratify it– can affect 40 percent of the global GDP.
Posted on October 11, 2015
Cash had a great year so far, might outperform both the stock and bond market, which has not happened since 1990. It is all down to the fact that liquidity has peaked and to the concern that Fed would raise rates.