As usual, this period provides an opportunity to reflect on what has been another eventful year. The year 2021 was largely back in full swing, thanks to the various major efforts and decisions made worldwide. 2021 was also the year of confirmation of our investment strategy, which we had rolled out in the second quarter […]
How do we see the economic and financial situation today at the start of the last quarter of this year?
It seemed for a little while that the past quarter would be concluded in peace and quiet. In the past summer months, there was a low degree of volatility in the financial markets. Everything seemed to have been lulled to sleep by the central banks. But the collapse of China’s largest property developer, “Evergrande”, triggered […]
Slowly but surely, the coronavirus pandemic is being overcome thanks to the small miracle called “vaccine”. Our economy is also returning to full speed thanks to the massive fiscal and monetary stimulus. Very soon after the outbreak of the pandemic in 2020, we correctly assessed its unavoidable major impact on financial markets and your portfolios. […]
In the meantime, the equity markets have risen from their ashes. The presidential elections are over, we are hearing positive news about vaccines and the third quarter earnings season was particularly robust. Let us address this while sticking to the communication framework we have used since the beginning of this crisis and zoom in on […]
Corona is gridlocking economies and societies, but the fixed income investor is doing amazingly well. 1. Government bonds The main driver in these special times for a fixed income investor is the steep drop in risk free rates. Especially the US Treasuries yield curve has dropped significantly. Earlier this year the Fed, the US […]
“The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.” (F. Scott Fitzgerald) The above quote by F. Scott Fitzgerald, originating from his collection of essays The Crack-Up published in 1935, is the perfect description of the mental […]