South China Morning Post (June 15)
“Japan is falling into a trap in defending its currency against the US dollar, like Thailand in 1996. Japan’s large forex reserves make the yen a juicy target, rather than deterring currency predators. Its fundamentals are weak and deteriorating, making the yen’s further decline inevitable.”
Tags: 1996. Forex reserves, Currency, Decline, Defending, Deteriorating, Dollar, Fundamentals, Japan, Predators, Target, Thailand, Trap, U.S., Weak, Yen
Barron’s (May 2)
“Sure, it feels like the S&P 500 has nowhere to go but down….and sentiment toward stocks remains terrible.” Given this, ”you’d expect to see fundamentals crumbling. They haven’t. About 80% of companies have reported better-than-expected profits this earnings season, while margins of non-bank companies, at least, have increased from the fourth quarter despite higher inflation.” With everyone “so terrified” and fundamentals strong, “stocks might be ready to rise.”
Tags: Better-than-expected, Earnings season, Fundamentals, Inflation, Margins, Non-banks, Profits, Q4, S&P 500, Sentiment, Stocks, Terrified
Wall Street Journal (September 12)
“Joby Aviation, which plans to begin an electric air taxi service in 2024, is worth more than Lufthansa, EasyJet or JetBlue…. Earlier this year, Tesla was worth more than the next nine car manufacturers combined, though now only the next six. Beyond Meat, made with pea protein, is worth more than the entire market for peas eaten globally…. Do fundamentals even matter?”
Tags: Beyond Meat, Car, EasyJet, Electric air taxi, Fundamentals, JetBlue, Joby Aviation, Lufthansa, Manufacturers, Market, Pea protein, Tesla
Investment Week (May 18)
“Credit fundamentals have worsened since the market sell-off began, although central banks could provide some companies with a soft landing and many firms have drawn on their credit lines in a bid to stay afloat.” Even though “the impact is highly correlated across geographies, industries and asset classes…the potential outcomes are too severe to only affect equities and credit-market fundamentals have undoubtedly been impacted.”
Tags: Asset classes, Central banks, Correlated, Credit, Equities, Fundamentals, Geographies, Industries, Market, Outcomes, Sell-off, Severe, Soft landing, Worsened
Institutional Investor (July 29)
U.S. REITs have soared on a “torrid rally.” Though the momentum will slow, strong fundamentals should underpin the sector, which is also benefiting from negative interest overseas. “The economy’s seven-year recovery should sustain real estate demand.” Moreover, “banks’ conservative real estate-lending policies in the wake of massive losses during the financial crisis should continue to limit supply.”
Tags: Banks, Demand, Financial Crisis, Fundamentals, Lending, Negative interest, Rally, Real estate, Recovery, REITs, Supply, U.S.
Institutional Investor (February 1)
There are some “stabilizing trends” underlying the recent market turbulence. “Stocks have taken a beating, but economic fundamentals in the U.S. remain strong. Look for volatility, and a rebound.”
Tags: Economy, Fundamentals, Market turbulence, Rebound, Stabilizing trends, Stocks, U.S., Volatility
New York Times (August 30)
“Economic fundamentals today are no different than they were before the market took a walk on the wild side.” The U.S. economy is “growing at 2.5 percent. At that modest pace, the United States cannot be of much help if other economies falter. But it can rebound from a market swoon, at least for now.”
Tags: Economy, Fundamentals, Growth, Market, Market swoon, Modest, Pace, Rebound, U.S.
Bloomberg (August 25)
Despite China’s promising long-term fundamentals, global automakers are facing “an oversupply time bomb” as China’s economy cools. Already, some import car dealers are holding nearly 150 days of supply. “If cutthroat competition for volume sales persists, exacerbated by weakness in the other once-promising BRICS markets, automakers could be headed toward a massive pileup in China.”
Tags: Automakers, BRICS, China, Competition, Economy, Fundamentals, Oversupply, Supply
Institutional Investor (December 31)
“The major market narrative remains oil.” 2014 brought the largest annual price decline since 2008. Investors are “focusing on what the impact of cheap oil will be on global fundamentals in the coming quarters.”
The Atlantic (February 4, 2014)
“Lehman conditioned us to always look for the next domino. But sometimes a falling currency is just a falling currency.” Since last May when then Fed Chairman Ben Bernanke mentioned tapering, “emerging market currencies have been in a world of pain.” But fundamentals are much stronger than before the Asian Currency Crisis so this needn’t be a repeat of 1997. “The danger isn’t slumping currencies. The danger is overreacting to slumping currencies.”
Tags: 1997, Asian Currency Crisis, Ben Bernanke, Currency, Emerging markets, Fed, Fundamentals, Lehman, Overreacting, Tapering
