Providencecapital

It is starting to get a bit boring: interest rates, rising further as core inflation remains high, especially in Europe (around 5.5%). Energy prices do help ‘headline inflation’ to come down, except in Germany and the Netherlands (+6.8%) but sticky inflation remains sticky. The goods industry is slowing or stagnant while the service sector continues … Read more

There are increasing signs of a recession in the goods sector: during the pandemic, parcels were flying around our ears. Then we were stuck and could not even go out or on holiday either. We are now catching up, but we have had enough of buying stuff for a while now. That is why many … Read more

Inflation can also be profitable The earnings season has started again. Caution about profits has been trumped up for some time, but it still appears to be unwarranted. Companies in the food sector, such as Unilever, Procter & Gamble, Ahold, Coca Cola and Nestlé almost all managed to increase their sales prices more than expected. … Read more

Last month was quite turbulent in financial markets. There was fear of banks again, just like in 2008, but was this Pavlov reaction justified, this flight out of equities, into government bonds? Suppose you set up the Bank for Bakers and all the bakers come and bank with you. They deposit their savings with you … Read more

We are now two months into the new year: 1 month of interest rate optimism and 1 month of interest rate realism. Because inflation will not be chased away that easily, as the recent figures in France, Spain and Germany showed. These did not fall, they rose! It is sticky stuff, something like: if you … Read more

It is of all times, this battle in financial markets, but now it is even more topical: the fight between Hawks and Doves. The Hawks want a strict monetary policy, the doves allow things to be a bit milder. Last year, investors joined the Hawks: central bankers had remained Doves for too long. They had … Read more

First of all, a Very Happy New Year! You and I, we all have New Year’s wishes. But what are the chances of them coming true? Let me take you through my list of 10 New Year’s wishes. Peace talks between Russia and Ukraine Generous supply of oil and gas No more coal firing and … Read more

What is the score? Who is scoring, who is trailing or downright failing? These are exciting times. I enjoy the reporting, though mostly from the side-lines. Who has the most energy? Surely, the most striking thing in Qatar was Germany’s smooth scoring. They went home quickly with a 15-year gas contract in the bag, starting … Read more

The battle between bull and bear is the familiar metaphor for stock market sentiment. For a long time, bears were on the winning side. Aided by sharply rising inflation and interest rates, stock markets were punished and, above all, downgraded. That was the first phase of the battle, with historically high P/E ratios, especially in … Read more