Aswath Damodaran on ESG
Damodaran makes two key points with particular elegance. One is that, in equilibrium, the insistence that ESG portfolios can outperform non-ESG portfolios makes no sense: “The notion that adding an ESG constraint to investing increases expected returns is counter intuitive. … Continue reading Aswath Damodaran on ESG
More on the 1950s and inflation
The blog post from Gabriel Mathy, Skanda Amarnath and Alex Williams is interesting. It argues that when we think about inflation, we should think more about the 1950s and less about the 1970s. Here is their statement of the standard … Continue reading More on the 1950s and inflation
Bank stocks as bellwethers
While there has been an unpleasant realisation that in the near term growth is not going to be quite as strong as it was, the consensus expectation is that bottlenecks will soon ease, demand will continue to be strong and … Continue reading Bank stocks as bellwethers
Wall Street charts weekly gain while bond yields tick higher
Chinese property group Evergrande has loomed over global financial markets. The Bank of England is keeping UK interest rates at a record low of 0.1%. The US blue-chip S&P 500 index ended the day 0.1 per cent higher, after falling … Continue reading Wall Street charts weekly gain while bond yields tick higher
AI adoption in the ETF industry begins to grow
Industry figures are divided on whether the systems can truly remove human bias and how much supervision they need The growing appreciation that human stockpickers struggle to outperform their benchmark indices has helped fuel a massive surge in assets held … Continue reading AI adoption in the ETF industry begins to grow
Wall Street stocks sell off as Evergrande crisis intensifies
Wall Street stocks dropped on Monday, echoing falls in Asia and Europe, as the liquidity crisis at Chinese property developer Evergrande cascaded across global markets. The S&P 500 fell 2.1 per cent, while the tech-heavy Nasdaq Composite slipped 2.6 per … Continue reading Wall Street stocks sell off as Evergrande crisis intensifies
The “Special Relationship” Set To Send US Stocks Even Higher
US stocks are already near record highs, but the special relationship between the S&P 500’s valuation and inflation – known as the “rule of twenty” – could be poised to send shares even higher next month… What is the “rule … Continue reading The “Special Relationship” Set To Send US Stocks Even Higher
Market Wrap up
What’s Going On Here? Microsoft and Alphabet announced stronger-than-expected quarterly results late on Tuesday, as they sold investors on the benefits of working from home all over again. What Does This Mean? Microsoft grew revenue from its computing and gaming segment by a better-than-expected 9%, its cloud computing business by 30% (even if that particular area was still smarting from the loss of a $10 billion US government contract), and its productivity business – services like Office 365 that continued to benefit from remote working – by 25%. Alphabet’s ad business across Google and YouTube likewise came good, shooting way beyond investors’ expectations – as did its … Continue reading Market Wrap up
Should you follow Hedge Funds in betting on Facebook?
Fresh data has shown that hedge funds’ new favorite stock is – drumroll please – our old friend Facebook: 27% of them own shares in the social media giant, and 57% have it as a top ten holding. And as luck would … Continue reading Should you follow Hedge Funds in betting on Facebook?
America’s $2 Trillion Infrastructure Plan Is Picking Up Speed, And These 17 Companies Are Along For The Ride
What’s going on here? If passed by his Democratic Party-controlled Congress, US president Joe Biden’s $2 trillion-plus infrastructure spending plan will unleash $750 billion worth of spending on the energy sector alone. Happily for investors, many of the companies in line to benefit … Continue reading America’s $2 Trillion Infrastructure Plan Is Picking Up Speed, And These 17 Companies Are Along For The Ride
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