The market consensus this month remains that the high inflation observed in all big data on a Year to Year basis is of a transitory nature rather than here to stay. The FED continues to make it clear to all market participants that inflation is under control as the economy grows, while avoiding any direct or indirect mention of tapering and downplaying chances of a rise in the yields on the horizon.Read More →
Investment Committee – June 2021
Inflation expectations continues to be the key topic between market participants. The difference this month lies in the market consensus now that, despite the spike observed in all big inflation data, inflation is high on a Year to Year basis but is rather transitory than here to stay.
Investment Committee May 2021:We continue to consider the inflation theme as key to the route of assets valuations. Inflation seems to be the hot topic between market participants with inflationary overshooting observed in several assets prices (energy etc.).Read More →
We saw developed markets strong performance in March with risk on approach continuing as there is no clear possible catalyst on the horizon to change this. Equities corrections are quickly bought back as Fed’s policy continues to be supportive until the maximum employment point of the economy which is far from here.
Payrolls announced last week were very positive and all macro data published recently seem to be supportive on the route of the real economy.
Options Trading Volume – US & Europe
Derivatives trading volume in the US has exploded over the past year and this upswing is more evident in small trades of 10 contracts or less. This typically is the kind of trades dominated by retail investors rather than big players. The amount spent on options premia has declined during autumn but is now back to record highs.
Selection of Value Stocks January 2021
In value investing our focus is on undervalued companies with strong balance sheets, trading lower than their actual fundamentals or relative to the market. One of the most effective ways to identify such stocks is the Piotroski f-score. This metric along with some additional ones shown below allow us to limit the universe of around 80K companies to just ~60. Equities presented in this list are potential candidates for newly created equity portfolios or rebalancing existing ones. Such a portfolio has the potential to withstand pressures of the current economic environment.
Investment Committee January 2021. The market started the year on a strong note with positive momentum rolling into 2021. Rising Covid-19 cases worldwide and social-political turbulence in the US due to the recent events in the Capitol after the Democrats senate win did not prove to be an obstacle.Read More →