S&P Earnings

Intersting charts from The Chart Store. Worth a look and a bit of thinking about whether the market is cheap or not. ...

Is the bottom in?

It seems most of the market participants believe the bottom is in on the equity, with the Dow, S&P and Nasdaq way above the minimum of March after a 7 week (bear) Rally. I am not so convinced and therefore stay almost fully cash waiting for the true bottom to be in. If I am missing the biggest opportunity of a life, then be it. But I strongly doubt. Have a look at the below charts, courtesy of William Hester of...

Volkswagen and the free market

Here’s something interesting. At an intraday high of 1,005€ (it was trading around 200 just a few days ago), Volkswagen has been for a few minutes the biggest company in the world for market capitalization. A whopping 380bn$. For a car-maker!!! Why this? Pretty simple. The whole hedge fund world was short VW because it was considered overvalued, and long other car-makers. Then Porsche (which already owned...

Time to buy?

The FT is a great newspaper, I think the best, and publishes extremely interesting and thought-through articles. I’d like to share one with you, quite provoking on potential future scenarios. A funny snippet here: “…the wealth of the average 50-year-old is $900,000, of which only a quarter has anything to do with financial assets. Worryingly, however, almost half of the rest comes from property...

Should I buy equity now?

Hopefully, the acute phase of the crisis is over. With the EU governments investing around 2trn€in different ways to sustain the credit markets (either through shares purchase, account guarantees etc), it seems that the risk of a systemic collapse of the financial world is now smaller than a few weeks ago. For this reason, markets bounced back 10 or 15% and they are still 5 to 10% higher than the bottoms. You...