Tag: equity returns

Investors should use mental models to find stillness in the midst of volatility. With gold reaching all-time highs and the JSE All-Share Index posting major gains, global markets remain full of activity. US fiscal concerns and ongoing geopolitical tensions add even more uncertainty. At present, there is rarely a dull moment for markets. However, this constant volatility generates mental noise.

Our research explores the differing relationships between a country’s economy and the earnings growth of its stock market. Ongoing talk of the risk of recessions is prompting questions about the strength of the relationship between economic growth and corporate earnings.

The bigger the military operation, the more sophisticated the financial machinery required to fund it. The Bank of England, today still the UK’s central bank, was created in 1694 as the government’s bank, largely to finance its ongoing wars with France.

There has certainly been plenty of foolishness, as a new generation of day-traders have pushed meme stocks, special purpose acquisition companies (SPACs) and cryptos to ridiculous levels. Battle-hardened investment professionals have not been immune to bouts of irrational exuberance either.