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Investment Week (May 18)

2020/ 05/ 18 by jd in Global News

“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.”

 

Institutional Investor (July 29)

2016/ 07/ 31 by jd in Global News

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.”

 

Institutional Investor (February 1)

2016/ 02/ 02 by jd in Global News

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.”

 

New York Times (August 30)

2015/ 08/ 31 by jd in Global News

“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.”

 

Bloomberg (August 25)

2015/ 08/ 26 by jd in Global News

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.”

 

Institutional Investor (December 31)

2015/ 01/ 01 by jd in Global News

“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)

2014/ 02/ 05 by jd in Global News

“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.”

 

USA Today (September 26)

2012/ 09/ 27 by jd in Global News

The SEC should curtail high-frequency trading, which breeds insanity. Traditional investors act “based on a belief that a company will prosper and that its price will rise, or… on the opposite belief.” High-frequency traders do not care “a whit about a stock’s fundamentals” they simply “buy and sell individual stocks multiple times in a fraction of a second, all in search of micro-profits with each trade.” This increases the risk of yet another flash crash. “These practices undermine the core purpose of markets, which is to raise capital in pursuit of enterprise, profit and economic growth.” The SEC should “slap a small transaction tax on rapid trades, impeding the practice and returning markets to their core purpose…. The only people harmed would be those now putting everyone else at risk.”

 

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