Providence Capital

September was a volatile stock market month that started badly, but gradually became more upbeat. The bouncer was China, which launched a hefty stimulus package just before the end of the month, sending its stock markets up 20-25% in a matter of days. This was the biggest rise in 16 years, but still investors will … Read more

August looked like a short-lived rollercoaster for financial markets, with equities first sharply down and then sharply up again. Meanwhile, we are back near the ‘all-time highs’ of mid-July, so has nothing changed at all? Appearances are deceptive, as interest rates have fallen in the meantime, as has the dollar, and there have been major … Read more

Recession fear? While this should have been a July newsletter, that whole (for us) relatively friendly month of July has long since been overshadowed by the wild start of August. In short order, equities fell 10% and investors fled to government bonds, especially US ones. Was it the fear of a recession in America, as … Read more

June was an unusual month. Both in Europe and in the US, the political centre seemed to be losing its grip on things, although officially nothing is happening yet. The electorate shifted to the right, but the European centre parties shifted along in that direction in time, maintaining their dominant position and thus their top … Read more

Introduction There are several important elections this year. Both investors and politicians are trying to respond to changing trends and mood swings among citizens. For instance, geopolitics and trade relations are getting in the way of business investment and stock market prospects. Even in countries that do not hold elections. Volatile After April, May was … Read more

Things have become more unsettled in financial markets. Stock markets showed their sunny side in the first months of the new year, but there have since been some thunderstorms. Markets are not so upbeat on inflation and interest rates. The fall in inflation stalled and so did interest rates, which rose and – in turn … Read more

Stock market sentiment remained again positive in March, with several markets breaking records: the US, Japan and the Netherlands are a few examples. With that enthusiasm, valuation levels also rise, although it is not a given that profits will increase correspondingly in a coming economic recovery. While the US economy is still barely faltering, economic … Read more

Interest rate cuts postponed February showed that financial markets can also move forward without the support of the bond market. Central banks are still reluctant to cut interest rates already now. For that, inflation, especially in the service sector in the US and Europe, is still falling too slowly. If the money market expected around … Read more