The wave of bankruptcies has started
Global equity markets have shown impressive strength over the past months, with surprisingly low volatility. One of the longest trading periods without a 5 percent daily drawdown ended on 5th of August 2024. When the stock market opened, the Nasdaq lost 900 points or...
Exaggeration based on hope for a new rate-cycle
Capital markets are sometimes prone to exaggeration. Aggressively marketed new business models regularly fuel the imagination of investors. As in the case of Peloton. Hopes of a revolution in the global fitness market caused the manufacturer of spinning bikes to soar...
The gravitational force of high interest rates
“Interest rates are like gravity in valuations. If interest rates are nothing, values can be almost infinite. If interest rates are extremely high, that’s a huge gravitational pull on values.” In one of his famous quotes in 2016, stock market legend Warren...
A questionable distinction between value and growth stocks
ChatGPT, the AI-employed chatbot, recently responded to the question, “Why is there a distinction between value and growth stocks?” with equal speed and confidence: “Value and growth stocks represent different investment strategies. Value investors...
