Providence Capital Interest rates and inflation One of the difficult aspects of investing is that sometimes one would want to be happy with price declines and still be disappointed with price rises. They are, of course, weird emotions, but they do fit with the defensive investor, which we have been for a while. At the same time, … Read more
Political power struggle While an economic cooling down was becoming increasingly evident, stock markets retained courage. But will the orchestra keep on playing courageously, while the iceberg is already well in sight? Is it overconfidence or justified in view of the Fed’s likely interest rate cuts and the resumption of the buy-back program by the ECB, with … Read more
Argentina If you would be the person making decisions on emergency credits to countries, would you lend 50% of available funds to Argentina? No, you would not, but the respectable IMF would, in fact did. “Last year, nobody was around or in a position to tackle a problem of this magnitude, except for the IMF”, … Read more
How sustainable is our responsible investment policy, and in particular with regard to the rest of the asset managers? And with sustainability we mean mainly the annual review of the PRI that we undergo. How do we monitor those Environmental, Social and Governance issues at the funds and the companies in which we are invested … Read more
Spending or investing? The accepted theory is of course that you keep your money in your pocket when interest rates are high. When rates are low on the other hand, you are tempted to spend it or even invest it. Resulting in an increased demand for goods and services and therefore an increase in inflation. … Read more
Interest rate cut With economic growth slowing down globally, markets recovered from the May downturn. Principally as a result of the Fed and ECB’s actions – both promising interest rate cuts and other forms of fiscal stimulus – the good mood made a comeback. The words used by Draghi came close to his “whatever it … Read more
Limboland We are still in Limboland, and worse, we are deeper in it since last month. Limboland is a greyish country, where economic life only advances slowly. Where in spite of negative interest rates, bonds enjoy a close investor interest. Entrepreneurs and even smaller countries are staring at each other and at the major powers … Read more
Financial climate Markets are numbly floating on, this springtime. With only a few barriers and sometimes a rapid, but few markets really dried up. Especially the US continued to grow in her own Goldilocks scenario, with job creation continuing. In Asia and Europe, however, the pace is slower whereas Japan and Korea have already slowed … Read more
Shares further up! Hovering between hope and fear is often the best times for stock markets. Fear is often a bad counselor, at least for panicking sellers, which we saw at the end of last year once more. For buyers this is often a rare opportunity. And when, one by one, the sting has been … Read more
Are we back to the Goldilocks’ scenario and can we peacefully go back to sleep, now that stock markets have recovered, the FED claims not to increase rates and Trump and Xi are seemingly looking for a deal?? Taking courage A new year, a new beginning?! But hold on, the worries of 2018 can’t be … Read more
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