Market View

Our point of view in current investment topics, from the conclusions of our research to hot market trends.

07.04.2016 | Investment newsletter

Bearings February 2015

Patience Pays

Forecasters often cite a figure of 8% – 10% as a likely outcome for stock market performance in the year ahead, and 2014 was no exception.

As sensible as this may sound, it is worth pointing out that over the past 89 years, the S&P 500 Index...

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07.04.2016 | Investment newsletter

Bearings January 2015

Liquidity and the Cross Section of Expected Returns

A preference for more liquid investments has led some investors to hypothesize that illiquid securities should command higher expected returns. Our examination of the historical returns and a number of commonly used liquidity and...

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06.03.2015 | Market commentary

Infallible Statistics

How can you tell a good investment strategy from a bad one… perhaps statistics can provide the answer?

A recent article in The Economist provides a good introduction to some of the ways statistics can mislead the reader, as well as the analyst. It opens with an intriguing story on how you might genuinely receive an email every week, for 10 weeks in row, which proposes an investment...

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18.02.2015 | Market commentary

What is my Benchmark?

“What is my personal investment performance benchmark?” is probably the question individuals should focus on most when deciding on an investment strategy to follow.  Why is it so important you ask? Well for one, it can help to screen out certain investment strategies. Additionally, it provides concrete evidence as to whether your investments are meeting, exceeding or lagging your...

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05.02.2015 | Market commentary

Systematic Risk

In our previous blog entry, and throughout many of our publications, we have explored the principles behind portfolio diversification within a global context.  As discussed in detail, it is important to focus on the portfolio as a whole and not of any asset class or position individually. 

This approach provides the best framework to manage portfolios, given idiosyncratic...

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22.01.2015 | Market commentary

Back to Basics

We came across an insightful comment from Barry Ritholtz of Ritholz Asset management earlier this week and wanted to share it with you. Barry made the following comment “In a diversified portfolio some asset classes will be lagging, and some leading; this is a feature not a bug.” This is something we are very in tune with as we mainly manage globally diversified portfolios. While markets from...

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21.01.2015 | Market commentary

SNB Suprise

On January 15th, in early European trading, the Swiss National Bank (SNB) shocked global capital markets by immediately discontinuing its Euro exchange rate floor and also instituting a -0.75% interest rate on reserves.  The immediate reaction caused a spike in the appreciation of the Swiss Franc (CHF) against all major currencies; both the Euro (EUR) and the US Dollar (USD)...

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29.12.2014 | Market commentary

The Vatican Bank, Christmas Cheer, And FATCA

While we would never normally talk about religion on our blog, it is not everyday that the words Vatican and FATCA end up on the same newspaper, let alone headline. In a shocking turn of the events, the Vatican has ushered in a new era of transparency and has brokered a deal with the the US Government for the automatic exchange of taxpayer information. For an institution that is typically...

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15.12.2014 | Market commentary

Holiday Season Quantitative Analysis

What do the Holidays, the S&P500 and the VIX all have in common? Well one analyst put together a chart showing how the stock market reacts when the VIX (the S&P 500 volatility index) rises 34% above its one month low. 

According to the data prepared by the J Lyons Fund...

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28.11.2014 | Market commentary

Even UK Mayor Borris Johnson affected by US ties

We wanted to share this article about London's Mayor Boris Johnson, and his refusal to pay US capital gains tax. Had Mayor Johnon sought our or our expert network's council, many of these issues could have been avoided. 

You can find the full story here: http://www.theguardian.com/politics/2014/...

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