Recently one of the mostly-followed corporate finance and valuation professor Aswath Damodaran has updated his metrix of the so called Equity Risk Premia (ERP) for countries around the globle. Unlike in recent year, this year the change in ERPs in some countries has been very significant. This is mostly because of the new phenomena that…
Many (and more every day) market pundits are raising their voices over “an imminent recession due. Given the recent stock market plunge of 20-30% top to bottom dependent on the index taken into consideration, it seems justified to be asking this question indeed. It comes even more out loud, if one takes a look at…
Over the last decade the correlation between inflation (measured by CPI YoY change) and the $SPX500 returns (also YoY) was clearly positive and pretty stong. Higher moderate inflation (below 3%) usually meant higher GDP growth, higher EPS growth for US corporations and generally healthy economic conditions. This naturally impacted stocks returns. Lower inflation (perios of…
Many investors scratch their heads these days as to whether the current market circumstances we’re facing constitute a good buying opportunity for stocks. In this short article I am trying to assess this question from three different perspectives: macro, micro and technical. The macro perspective This point of view is possibly the biggest worry for…
Attached you will find a long term Bloomberg graph showing a very important equities characteristic that usually has significant impact on their overall returns in the future – the Real Earnings Yield. This graph shows aggregate data for the $SPX500. What is Earnings Yield (EY)? 🤔 EY is calculated by dividing a stock’s EPS by…
Dear Followers&Copiers, A short note on $INTC (Intel) and the price reaction post its earnings release: 👉 Earnings were actually mixed to better than expected: EPS: $1.71, adjusted, versus $1.11 expected. Revenue: $18.1 billion, adjusted, versus $18.24 billion expected. Exp 4Q21 revs $18,3bn vs. $18,24bn exp 👉 The reasons for an 11% drop were actually…
𝗜𝘁’𝘀 𝗯𝗲𝗲𝗻 𝗮 𝘀𝗵𝗼𝗿𝘁𝗲𝗿 𝘄𝗲𝗲𝗸. 𝗘𝗾𝘂𝗶𝘁𝗶𝗲𝘀 𝗳𝗲𝗹𝗹 𝗲𝘃𝗲𝗿𝘆 𝘀𝗶𝗻𝗴𝗹𝗲 𝗱𝗮𝘆 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸. 𝗜𝗻𝗱𝗶𝗰𝗲𝘀 𝗶𝗻 𝗨𝗦 𝗮𝗻𝗱 𝗘𝗨 𝗲𝗻𝗱𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗿𝗲𝗱 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘄𝗲𝗲𝗸, 𝘄𝗵𝗶𝗹𝘀𝘁 𝗔𝘀𝗶𝗮 𝗼𝘂𝘁𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗲𝗱 𝗮𝗴𝗮𝗶𝗻. 𝗠𝗮𝗷𝗼𝗿 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗿𝗲𝘁𝗿𝗲𝗮𝘁 𝗮𝗿𝗲 𝗗𝗲𝗹𝘁𝗮 𝘃𝗮𝗿𝗶𝗮𝗻 𝗰𝗮𝘀𝗲𝘀, 𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿’𝘀 𝘃𝘂𝗹𝗻𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆, 𝗽𝗲𝗿𝘀𝗶𝘁𝗲𝗻𝘁 𝗵𝗶𝗴𝗵 𝗶𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗿𝗲𝗮𝗱𝗶𝗻𝗴𝘀 (𝗣𝗣𝗜 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸), 𝘁𝗮𝗽𝗲𝗿𝗶𝗻𝗴 𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗺𝗲𝗻𝘁 𝗳𝗲𝗮𝗿𝘀. $SPX500 is now 2% off its…
𝗗𝗲𝗮𝗿 𝗖𝗼𝗽𝗶𝗲𝗿𝘀/𝗙𝗼𝗹𝗹𝗼𝘄𝗲𝗿𝘀, 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸 𝗜 𝗮𝗺 𝘄𝗿𝗶𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗪𝗲𝗲𝗸𝗹𝘆 𝗮𝘀 𝗼𝗳 𝗙𝗿𝗶𝗱𝗮𝘆 𝗺𝗼𝗿𝗻𝗶𝗻𝗴 (𝘀𝗼 𝘄𝗼𝗻’𝘁 𝗰𝗼𝘃𝗲𝗿 𝗙𝗿𝗶𝗱𝗮𝘆), 𝗮𝘀 𝗜 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗼𝘂𝘁 𝗶𝗻 𝗮 𝗽𝗹𝗮𝗰𝗲 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗶𝗻𝘁𝗲𝗿𝗻𝗲𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘄𝗲𝗲𝗸𝗲𝗻𝗱. 𝗧𝗼𝗱𝗮𝘆 𝗯𝗲 𝘄𝗮𝘁𝗰𝗵𝗶𝗻𝗴 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗡𝗙𝗣 𝗿𝗲𝗮𝗱𝗶𝗻𝗴, 𝘄𝗵𝗶𝗰𝗵 𝘁𝗵𝗲 𝗙𝗲𝗱 𝘀𝘂𝗿𝗲𝗹𝘆 𝘄𝗶𝗹𝗹 𝘄𝗮𝘁𝗰𝗵 𝗰𝗹𝗼𝘀𝗲𝗹𝘆 𝘁𝗼𝗼 :). It’s been another strong week for equities. Especially Japan…
Dear Copiers&Followers, Below you will find a very interesting article about how the Hedge Funds industry has performed so far this year. Here are the basic conclusions from my side: ◼ HFs still struggle to make a competitive race with ETFs and actively managed mutual funds. ◼ No single HF strategy has outperformed the $SPX500…
𝗧𝗵𝗲 𝘄𝗲𝗲𝗸 𝗯𝗲𝗹𝗼𝗻𝗴𝗲𝗱 𝗰𝗹𝗲𝗮𝗿𝗹𝘆 𝘁𝗼 𝗠𝗿.𝗣𝗼𝘄𝗲𝗹𝗹. 𝗪𝗵𝗮𝘁 𝗵𝗲 𝗱𝗶𝗱 𝘄𝗶𝘁𝗵 𝗵𝗶𝘀 𝗝𝗮𝗰𝗸𝘀𝗼𝗻 𝗛𝗼𝗹𝗲 𝘀𝗽𝗲𝗲𝗰𝗵 𝗿𝗲𝗮𝗹𝗹𝘆 𝗱𝗲𝘀𝗲𝗿𝘃𝗲𝘀 𝗿𝗲𝘀𝗽𝗲𝗰𝘁. 𝗥𝗲𝘀𝘂𝗹𝘁 𝗶𝘀 𝗻𝗲𝘄 𝗔𝗧𝗛𝘀 𝗳𝗼𝗿 𝗲𝗾𝘂𝗶𝘁𝗶𝗲𝘀 𝗮𝗻𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗰𝗮𝗹𝗺𝗲𝗱 𝗱𝗼𝘄𝗻 𝗶𝗻 𝘁𝗲𝗿𝗺𝘀 𝗼𝗳 𝗳𝘂𝘁𝘂𝗿𝗲 𝗽𝗼𝗹𝗶𝗰𝘆. Fed Chair Jerome Powell did a great job last week. He gave the market what it wanted (a clearer info on the upcoming…
