In value investing we are looking for undervalued companies with strong balance sheets, trading significantly lower than their actual fundamentals. One of the most effective ways to identify such stocks is the Piotroski score. In this analysis we use Piotroski filter higher than 6.30, adding filters for P/E < 30, FCF yield on price and Net Debt/EBITDA.Read More →
Investment Committee September 2020.
Within the classic 60-40 model portfolio, bonds are widely substituted with gold as it becomes more and more attractive for investors in a negative yield environment.
We consider equities and bonds on the expensive side at the moment despite FEDs unlimited liquidity. This will have severe consequences going forward, but we definitely cannot tell this happens in the month ahead.
There is a lot of talk lately regarding the 60/40 portfolio due to its simplicity and performance (2020 included). It surely gives good argumentation to the passive management camp and makes investing look simple.
Unfortunately investing is not simple, the 60/40 portfolio is not magic and in the current environment it may prove to be a significant source of risk for the market participants.
Investment Committee August 2020
Here are the key points discussed in our monthly investment committee. Within the classic 60-40 model portfolio, bonds are widely substituted with gold as it is more attractive for investors in a negative yield environment.
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Investment Committee July 2020
These are key points discussed in our monthly investment committee meeting:The teams’ consensus for the month is we remain neutral with a long bias on equities.
Flows continue to be more important as market drivers than fundamentals and news, as the gap between the Wall Street and the ‘main street’ widens.Our view is that precious metals could continue to shine in a negative yield world. We remain positive on Gold, Silver & Copper.
In this series of posts we intend to highlight significant events in the history of financial markets. Learning from the past helps us understand the evolution of things and can also give us insights into the future. We believe this is particularly true for the financial markets.Read More →
2020 vs 1929: Similarities and differences
History has shown that every financial crisis is different from previous ones, in aspects of conditions, catalysts and market response. However, the 2020 stock market environment strongly resembles the 1929 market with equities rallying, further widening the gap between fundamentals and the valuations, while the real-economy weakens.
In this post we explore six similarities and three diferences between 1929 and 2020. We leave you to make your own judgement.