The CAPE ratio; The good, the bad & the ugly

Is the CAPE ratio a decent way to demonstrate the value of shares? Well, indeed that’s still possible. The CAPE ratio, or the Cyclically Adjusted Price Earnings ratio, is back in the news. The valuation measure of Nobel Prize winner Robert Shiller causes fear of height among investors and speculators. But how serious should we […]

European stocks potential

3 European stocks with recovery potential

3 European stocks with recovery potential David Herro, American businessman and CIO of Harris Associates, shares with CNBC some of his European picks he expects will recover in the coming period. Two of these three stocks are banks and Herro explains why European banks are currently interesting. Herro has a longstanding position in Credit Suisse […]

uncertainty

Investors are mispricing certainty

Investors crave certainty, but they are also highly prone to misprice her. Since Britain voted to leave the EU the return offered by developed market government debt has tumbled to new lows. The US 30-year treasury yield is down to nearly two percent, whilst the UK government equivalent is now below 1.6%. In other words, […]

Consequences of Brexit

Business as usual | Consequences of Brexit

Brexit; more than enough is being said and written about it. In a world where opinions are more important than facts, it is wise from an investor’s point of view to first consider the implications of the Brexit on the main swing factors in the world economy: China’s economy, the dollar and the policy of […]

FTSE 100 composition

UK markets price in full-blown recession

There is something quaintly British about trying to accentuate the positive from UK markets at the moment, but it’s getting increasingly tough, even by our stiff upper lip standards. Exhibit one for those trying to stay smiling is the FTSE 100, just look at it go. It had a wobble the day after the referendum, […]