Global Markets Update Tobin’s equity Q is a warning for US equities Today’s Flow of Funds report published by the Federal Reserve reveals that the market value of the equity issued by US non-financial companies at the end of the third quarter was 0.91 times the net... 10th December 2009 · 1 min read
Global Markets Update Are gold prices now in a bubble? We do not believe that gold prices have risen beyond levels that could ever be justified by fundamentals. However, the absence of a bubble today will not prevent prices from falling back sharply next... 10th December 2009 · 1 min read
Global Markets Update Why the US equity market rally is likely to run out of steam The rally in the US equity market is nine months old and still going strong. This is not surprising. Equity prices typically start to rise six months or so before the economy emerges from recession... 2nd December 2009 · 1 min read
Global Markets Update Gold is expensive insurance against bubbles The latest surge in the price of gold could be justified by the desire for insurance against the risks of inflationary bubbles developing in other assets, as well as a collapse in the US dollar. But... 23rd November 2009 · 1 min read
Global Markets Update Will the sun ever rise on Japan’s stock market? 20th November 2009 · 1 min read
Global Markets Update Capital controls unlikely, but rupiah to strengthen anyway 19th November 2009 · 1 min read
Global Markets Update Is the widening in the EMBI spread a warning sign? 17th November 2009 · 1 min read
Global Markets Update Turning bearish on the yen The yield on Japanese government bonds (JGBs) has risen sharply in recent weeks. Admittedly, yields have risen in other countries. But an additional factor has been concern that the new government is... 11th November 2009 · 1 min read
Global Markets Update Bond yields to drop back in 2010 as inflation fears fade The recent rise in longer-term government bond yields primarily reflects expectations of higher inflation. These expectations are still relatively low and could climb a little further in the coming... 10th November 2009 · 1 min read
Global Markets Update What should we make of India’s gold purchases? The news that the Reserve Bank of India has bought gold from the IMF has been interpreted as very bullish for gold prices and bearish for the dollar. Neither is necessarily true: holdings of US... 4th November 2009 · 1 min read
