Interest rate happy?

Economic complaints are raining down from all sides, often with increased interest rates as the deeper background. And yet this monthly report is titled: interest rate happy? Was this perhaps a typo? After all, who gets happy about higher interest rates? In fact, it acts like a grindstone, slowing down economic growth. Everything just goes … Read more

Martijn Meijer

Investment Manager +31 (0)88 8086 900 +31 (0)6 10491693 mmeijer@providencecapital.eu vCard LinkedIn As an Investment Manager, Martijn is member of the Investment Committee. He is the point of contact for entrepreneurial families in managing and advising on their investments. Martijn worked for almost 16 years for Wijs & Van Oostveen, an asset manager in Amsterdam; … Read more

After us the deluge?

Inflation rates fell, while interest rates rose sharply in September. The explanation is possibly because statistics look back, but markets look forward. The oil market, which is important for inflation, looked tight and prices rose sharply. That price rise has yet to feed through to the rest of the economy. And even if inflation now … Read more

Looking beyond the business cycle: will Goldilocks come back?

A few years ago, the financial world was as beautiful as Goldilocks: self-evident growth and low inflation. But it looks like it’s ugly stepsister has taken over. The manufacturing economies of this world are struggling. The West is ordering less, so the East, starring China, South Korea, Japan, and Taiwan, is getting fewer export orders. … Read more

What kind of climate was it last month?

This could be an account of a first boring summer-month. Do I hear ‘’summer”? When I step into the municipal outdoor pool early in the morning, it turns out to have cooled down considerably due to the rain, to about 19 degrees. I would have been better off stepping into the North Sea at around … Read more

Is cash becoming King again?

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

What does a recession look like?

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

The art of wise choices

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

The banks and the Pavlov reaction

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