Stuart is a research analyst for the M&G Multi Asset team and is editor of the Episode blog. He joined M&G in 2005 and has worked in the Episode team since 2007. Stuart has a degree in English and History from York University and is a CFA charterholder.
Volatility returned in February, but not the kind of volatility we have been used to for much of the period since the financial crisis.
Instead of being about growth fears, the catalyst for the equity market drawdowns in early February was pressure on valuations caused by rising… Read the article
In the midst of February’s volatility most of the reasons given to explain equity market declines centred on the role of rising US bond yields and, perhaps, the exaggerating role played by exchange-traded volatility products.
Since then, equities have seen another (modest) bout of… Read the article
It is always worrying to hear investors ask how managers performed over very short time horizons. It seems very unlikely that a couple of weeks’ performance can tell you much about a fund manager’s skill as opposed to luck.
But short time frames might be able to… Read the article
Real interest rates are an anchor for the valuation of all assets. The classical theory of interest holds that as a ‘discount rate,’ they embed the market’s relative preference for cash today over cash in the future.
The US cash rate is arguably the best sense we… Read the article
Is it true that “the easy money has been made?”
This is something that it has been common to hear over the last couple of years and, it seems, is even more common today.
But, as Morgan Housel pointed out in 2015:
One of the most common clichés of the last couple of years is the idea that we have been in ‘the most hated bull market in history.” Today attitudes are shifting.
There are a couple of reasons why we don’t believe that forecasting short term events is a sustainable investment approach.
First, it is very difficult: how can one have a sustainable forecasting ‘edge’ over and above what is currently priced into the market on something like an election result?… Read the article
One should probably be wary of writing yet another article on Bitcoin. If the number of press articles and blog posts was an indicator of bubbles, then there would be little debate. Aside from the fact that it is now the middle of winter, Bitcoin would certainly satisfy all the… Read the article
We are told that markets are ignoring news flow today in the hunt for short term gains. In part this seems to be an issue of salience. The news which ‘feels’ more important is that which grabs the headlines: Korean missile tests, the unwinding (or not) of QE,… Read the article