Insights

 

Understanding Equity Market “Style Factors”

NBR Articles, Published 22nd October 2024

The maxim that “birds of a feather flock together” often seems to apply as strongly to the share market as it does to ornithology.

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How the flow of funds in the economy effects corporate profits

NBR Articles, Published 17th September 2024

Throughout the global economy, every time someone (or some entity) receives a cash inflow, someone else (or some other entity) is paying a cash outflow.

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Are the Cashflow Kings becoming Capex Kings?

NBR Articles, Published 13th August 2024

When the online & software companies that dominate the market today were overtaking the largest industrial & financial companies in terms of market capitalisation, one clear point of contrast had…

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Risk matters

NBR Articles, Published 2nd July 2024

Conventional finance theory typically describes investor preferences in the two dimensions of expected return and risk, where risk is measured in terms of the standard deviation of returns.

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What will be the Next Big Thing?

NBR Articles, Published 4th June 2024

 Right now, generative AI is the “Big Thing” in global equity markets. Equity markets also remain excited about GLP-1 weight-loss drugs.

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Making sense of volatility

NBR Articles, Published 30th April 2024

Sensible investors will appreciate that a realistic expectation for global equity markets (in aggregate) is for long-term returns to exceed inflation by about 5% or 6% per annum.

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Will the market share your bullish views when the tide goes out?

NBR Articles, Published 26th March 2024

In my 31 years of equity analysis and portfolio management, the language used by equity analysts and other market participants to communicate their ideas has become more short-term in nature than ever before.

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Home bias plus passive investment equals distorted markets

NBR Articles, Published 20th February 2024

Advocates of passive investing will generally claim that the combined impact of passive investors on the relative market pricing of different equities is minimal.

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Paradoxes & pitfalls of measuring average returns

NBR Articles, Published 16th January 2024

Over the past 6 calendar years, the arithmetic average annual return from bitcoin has been 78. 9% when measured in US dollars.

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Noise or trend? Or seasonal effect?

NBR Articles, Published 21st November 2023

At a certain level, a lot of equity analysis is about predicting whether a squiggly line on a graph will move up or down in the future.

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