Is there an equities’ bubble?

Posted on 25. Nov, 2013 by Jean Jacques Ohana in Weekly Focus

Recently, some high profile investors worried about stocks bubbles which could have been fostered by Central Banks’ quantitative policies. These bubbles would threaten to implode once Central Banks would withdraw assets purchase programs. From a fundamental point of view, the bubble on US equities is more about the historically high equities’ profit margin rather than [...]

Italian Government bonds: Cosa succede esattamente?

Posted on 19. Nov, 2013 by Jean Jacques Ohana in Weekly Focus

Italy is the clearest loser of the euro zone crisis. Since 2010, the country has suffered from an overvalued currency and absurdly high private and public debts’ interest rates given its positive primary fiscal balance (before payment of interest rates).

As showed in figure 1, the borrowing costs of Spain and Italy depend much more on [...]

Are Chinese equities ready to catch up?

Posted on 12. Nov, 2013 by Jean Jacques Ohana in Weekly Focus

Chinese equities have clearly underperformed other equities, particularly developed countries. As a matter of fact, the Chinese economy represents more than 13% of worldwide GDP but only 2% of worldwide market capitalization. The price to book of Chinese equities stands at 1.4 vs. a price to book at 2.5 for US equities. The excessive bubble [...]

What to expect from emerging markets?

Posted on 04. Nov, 2013 by Jean Jacques Ohana in Weekly Focus

Since 2011, equities from emerging markets have been the poorest assets performers together with commodities. They are the only assets which have not benefited from the monetary stimulus undertaken by developed central banks. Ironically, emerging assets are also the most exposed to the withdrawal of quantitative easing policies, notably the so called “tapering” hinted by [...]