Institutional Investor (December 19)
Investors and CEOs using their power to change the world around them provides the best hope for restoring value-creating potential to relationships between public companies and asset owners. But it may not be good enough. Investors and companies that seek to remain in public markets and derive value from their relationships will need ways to find each other in the masses of intermediaries between them, special tools for using this approach, and plans for navigating the inevitable collisions with short-term activists.”
Tags: Asset owners, CEOs, Hope, Intermediaries, Investors, Markets, Navigating, Potential, Power, Public companies, Relationships, Restoring, Value, Value-creating
Financial Times (December 16)
“European bonds rallied on Friday, pushing yields to nine-month lows as investors focused on the latest signs of a slowing economy and shrugged off the European Central Bank’s insistence that it was not considering interest rate cuts.” Given the Fed’s pivot, markets appear skeptical of “ECB president Christine Lagarde’s insistence on Thursday that it was too soon to talk about the timing of rate cuts and that the bank had ‘more work to be done’ in its battle to tame inflation.”
Tags: Bonds, ECB, European, Inflation, Insistence, Interest, Investors, Lagarde, Lows, Rallied, Rate cuts, Slowing Economy, Timing, Yields
Wall Street Journal (December 12)
“Investors spent most of 2023 fretting about inflation and interest rates. Now they are snapping up everything from stocks and bonds to crypto and even gold.” Does the “simultaneous surge across assets” signal “the arrival of a lasting bull market” or is it “just a fleeting sugar high at the end of the Federal Reserve’s tightening cycle?” Opinions are divided.
Tags: 2023, Bonds, Bull market, Crypto, Cycle, Fed, Fleeting, Fretting, Gold, Inflation, Interest rates, Investors, Stocks, Surge, Tightening
Washington Post (December 2)
“The debate now is when the Fed will start cutting interest rates. Stocks ,, come by May. That would certainly help the housing market, which has frozen with mortgage rates at the highest levels in about two decades.”
Tags: Betting, Cutting, Debate, Fed, Frozen, Highest, Housing market, Interest, Investors, Mortgage rates, Rallying, Rates, Stocks
Bloomberg (December 1)
“For all the bullish milestones notched by November’s big market surge, recent history offers Wall Street a lesson in caution. Time and time again, speculation breaks out that the Federal Reserve is poised to ease monetary policy soon enough — spurring even cautious investors to erupt in a spasm of cross-asset buying. Stocks jump, bond yields fall, and a dash ensues among equity speculators into shady corners encompassing everything from meme fliers to crypto and profitless tech.”
Tags: Bonds, Bullish, Caution, Cautious, Cross-asset buying, Crypto, Fed, Investors, Market surge, Monetary policy, November, Speculation, Stocks, Tech, Wall Street, Yields
Investment Week (November 6)
“Fixed income markets are currently experiencing a rare irregularity. Short-dated bonds are trading at a higher yield than long-dated bonds, in other words, the yield curve is “inverted”. For investors in short-dated corporate bonds, this provides a unique opportunity to benefit from some of the most favourable forward looking relative return prospects and attractive valuations in recent history.”
Tags: Bonds, Fixed income, Inverted, Investors, Irregularity, Long-dated, Markets, Rare, Relative return, Short-dated, Valuations, Yield curve
Wall Street Journal (October 31)
“Monetary policy officials are hinting to financial markets that the Federal Reserve will stop raising interest rates—even as the Fed signals that it is too early to declare victory over inflation. Wary investors can only speculate, while market analysts are happy to guess the Fed’s next move.”
Tags: Analysts, Federal Reserve, Financial markets, Hinting, Inflation, Interest rates, Investors, Monetary policy, Officials, Signals, Speculate, Victory, Wary
Euromoney (October 30)
“There comes a point when investors cannot ignore the E, the S and the G in their investment strategies because there will be companies, business models and even entire industries that will no longer function if global temperatures exceed1.5 degrees over preindustrial levels, or if socio-political crises escalate, or if corporate mismanagement scandals multiply.”
Tags: 1.5 degrees, Business models, Companies, Corporate mismanagement, Crises, ESG, Industries, Investment strategies, Investors, Preindustrial, Scandals, Socio-political, Temperatures
New York Times (October 24)
“To oil analysts and investors, Chevron’s $53 billion takeover of Hess confirmed that there’s a new cycle of consolidation in the industry, coming less than two weeks after Exxon Mobil’s $59.5 billion bid for Pioneer Natural Resources.” In spite of “pressure from climate-minded policymakers, investors and activists to embrace greener energy,” the majors are “instead focusing on getting bigger. That could create a larger gap in the industry between those who have the firepower and freedom to buy rivals, and those who, because of politics or finances, do not.”
Tags: Activists, Analysts, Chevron, Climate-minded, Consolidation, Exxon Mobil, Firepower, Freedom, Greener energy, Hess, Investors, Majors, Oil, Pioneer, Policymakers
Wall Street Journal (October 9)
“Investors worried about the recent pullback in stocks are counting on the coming earnings season to give them something to get excited about. For much of 2023, U.S. stocks roared higher despite lackluster corporate profits. But an accelerating selloff in bonds has pushed longer-term yields near their highest levels in more than a decade, denting enthusiasm for stocks.”
Tags: 2023, Bonds, Earnings season, Investors, Lackluster, Profits, Pullback, Selloff, Stocks, U.S., Worried, Yields
