The relative fortunes of banks in different parts of the world have been increasingly indicative of underlying trends in currency markets. The question is, however, is this a coincidence or should we be viewing it as a signal? Show More
Global banks
There is a strong correlation between banks and bond yields, as the chart below shows. Extreme interest rate policies in Europe and Japan have led to remarkably low yields, and in turn, banks trading close to - or even below - book value. However, with rates turning back up in... Show More
A recent visit by the Investor Relations manager of a well-known global diversified investment bank served as a reminder of why, in our opinion, investors should always be cautious of investing in such financial conglomerates, particularly where a large portion of the business is an investment bank. Show More
Global banks have formed a cornerstone part of PM Capital’s strategy as they’ve taken the #1 ranking in their category in the Morningstar survey over five and eight years. Following the election of Donald Trump, the Nasdaq Global Bank Index is up over 15%. So, has all the easy money... Show More
The usual stock market mantra is that you sell on the rumour and buy on the fact. With a significant rally ensuing after Donald Trump’s surprise election win, is it the same here? Should you sell now that the new President has been inaugurated and the risks of a Trump... Show More
The reaction of the markets was instructive on the day of the election results. Once the outcome was known, Asian and European markets placed their bets and markets sold off. By the end of the following day’s US trading, they were proved to be 100% incorrect. So even with a... Show More
The one constant in global markets is change and since the 2008 financial crisis, the financial sector has faced no shortage of challenges with many banks stuck in a quagmire of poor regulatory and operating outcomes – whilst many sectors have benefited from low rates, the associated margin pressure has... Show More
