News flash Will Russia go nuclear?

Will Russia go nuclear?

Last weekend, President Vladimir Putin ordered Russia’s nuclear forces into a higher state of alert, the first time the Kremlin has done so since the Russian Federation was established in 1991. According to Daryl Kimball, executive director of Washington-based Arms Control Association, “This is the first time in the post-Cold War era that a US…

News flash Sanguine outlooks

Sanguine outlooks

Just how different this year is proving to investors! Most analysts expected some action on interest rates from the US Federal Reserve in 2022, but perhaps not the five rate hikes they’re now pricing in. Inflation was clearly driving upwards, but we’re seeing much higher, more consistent price increases. Since early January, many global institutional…

News flash Earnings growth matters

Earnings growth matters

The book The Wisdom of Crowds by James Surowiecki refers to the idea that large groups of people are collectively smarter than individual experts when it comes to problem-solving, decision-making, innovating, and predicting. This is especially relevant as it pertains to financial markets, but there is an important caveat that participants in the crowd need…

News flash A tale of mixed fortunes

A tale of mixed fortunes

The week was dominated by the mixed fortunes of two of the world’s largest companies, namely Meta, the holding company for Facebook, and Amazon. Facebook parent company Meta has produced less than stellar results, and – according to UBS – is the TikTok for “old people”. Its results led to a historic plunge in the…

News flash Explaining the equity market correction

Explaining the equity market correction

Equity market corrections are certainly not unusual and are both more frequent and less severe than market crashes. The Nirvana, of course, is when markets move up steadily, such as the period between October 2016 and January 2018 when the S&P experienced positive returns for fifteen consecutive months, leading to a cumulative return of 36%…