Global financial markets extended their rally during the first quarter despite significant unrest across parts of Northern Africa and the Middle East, a massive earthquake, tsunami and partial nuclear meltdown in Japan, renewed sovereign debt issues in Europe, and continued inflationary pressures in several key developing economies. Although these exogenous shocks did cause a temporary spike in the “fear gauge” commonly known as… Read More
Wrapping it up into a single sentence, 2010 could be described as the year in which global equity markets managed to tack on impressive gains despite an anemic economic recovery and a host of other macro concerns. Not only did the world survive, but we realized once again how well societies and companies can withstand misfortune and still churn forward…. Read More
Oceanic tides, or the cyclical rise and fall of seawater, are one of the most powerful forces on Earth. Tides are caused by slight variations in the gravitational pull of the moon and sun, and the rotation of our planet. Many parts of the world experience mixed tides, where successive high-water and lowwater stands differ appreciably. Given the recent experience, we… Read More
In “normal” times, relatively small countries in southeastern Europe are not capable of holding hostage the world’s vast financial markets. After all, the market capitalization of publically traded Greek companies is only about $65 billion (1/4th that of Exxon Mobil Corporation (XOM)), and its Gross Domestic Product (GDP) represents less than 0.6% of the world’s total output. Despite this numerical insignificance,… Read More
In reviewing the statements that follow, you’ll notice that global equities extended their rally during the first quarter, albeit at a more moderate pace. The benchmark S&P 500 appreciated by just over 5%, Small Caps once again outperformed their larger brethren, and International equities lagged somewhat given currency fluctuations. Cash continues to provide a negative real return (rate less than inflation),… Read More