In the nineteen-sixties, mathematician Benoit Mandelbrot noticed something that experienced traders had known for long: that time at the stock exchange does not always run the same. Read about the relativity of time here.
“Don’t put all your eggs into one basket” – who has not heard this old stock market adage. With Easter approaching, we are having a closer look with the latest figures.
Google ‚forecasting future‘, and over 28 million hits appear. Clearly, knowing what will happen before it happens is big business: from financial markets to the weather, and anything in between, says Rosmarie de Wit, Austrian center for meteorology (ZAMG).
There are many factors that may affect inflation. Also, the weights of certain factors may vary across countries. Take the development of the exchange rate, for example.
Equity indices have undergone a global correction in the past days. The Dow Jones index has shed more than 10% from its January high. What is the macro-economic reason for the correction?
In the context of record lows of money market rates and low government bond yields, high-yield bonds remain in demand. In view of the already very low spreads it may be worthwhile having a closer look at this bond segment.
Having defined and explained various management styles in equity management in part 1, we will now have a look at the specific styles and their return/risk ratio over time.
A clear sense of style is not only important in fashion, but more and more so in equity management as well. But what does “style” mean in equity management? Do stylistic preferences change over time, like in fashion? If so, what triggers those changes? Questions upon questions, but before we go into detail in part 2 of this series, let us first clarify what we mean by style(s).
In Part two of this series on alternative investment strategies, we described the most important strategies “trend following”, “global macro”, and “long/short equity”. In this Part three, we will be looking at approaches that are less well-known but equally tried and tested.
Volatility has increased on the markets. The main reason for this has not occurred often in the past years: statements by the central bankers according to which the extremely expansive monetary policy will be reeled in. Are we going through a trend reversal?