Market Commentary


Some Observations as We Depart

Author: David Kotok, Post Date: June 11, 2010

We leave tonight for the GIC meetings in Prague and Paris. Bond accounts are invested and the spread strategy and longer duration continues to be the theme. Stock accounts were fully invested on the dip and rebalanced. Cash earns near zero and the allocation to cash is also zero. Global Multi-Asset Class favors a strong […]

Global Markets Feel the Pain in Spain

Author: Bill Witherell, Post Date: June 8, 2010

The euro dropped another 2.5% last week against the US dollar, reaching a four-year low against the greenback. Global equities ended a turbulent week by tumbling Friday, June 4, by -3.4% for the S&P 500 and -3.1% for the EuroStoxx 50. On Monday, markets continued to retreat, with the S&P 500 down another -1.35% and […]

Oil Slickonomics – Part 7A

Author: David Kotok, Post Date: June 7, 2010

A few quick notes in response to the many emails about Oil Slickonomics – Part7. We thank readers for them. First, we had an error in Sunday’s Oil Slickonomics – Part 7. We typed 20 billion and meant to type 2 billion. I missed it on three edits, as did our copyeditor Charley S. I […]

Oil Slickonomics – Part 7

Author: David Kotok, Post Date: June 6, 2010

“The oil industry’s experience base in deep-water well control is limited.” A massive oil spill “could easily turn out to be a potential show stopper for the (outer continental shelf) program if the industry and MMS do not come together as a whole to prevent such an incident.” ource: May 2000 draft statement of environmental […]

Consider Peru

Author: Bill Witherell, Post Date: June 3, 2010

Peru is a relatively small emerging-market country on the west coast of South America, with a market-oriented economy that is the sixth largest on the continent. That is not large enough to get on the radar screen of many international investors, but we think it is worthy of careful consideration.  Peru is blessed with ample […]

LIBOR: Liquidity or Insolvency?

Author: Bob Eisenbeis, Post Date: June 2, 2010

Hand wringing has begun again as the LIBOR has risen and LIBOR-OIS spreads have also begun widening. The cost to European banks of borrowing, as reflected in that spread, has risen in the last week or so to over 200 basis points. Commentators are suggesting that we may be on the cusp of another liquidity […]

Oil Slickonomics – Part 6

Author: David Kotok, Post Date: May 31, 2010

“The fact that neither the government nor the public sector was prepared for the blowout of the British Petroleum rig indicates a profound failure of planning, execution and regulation. While Congress and others look for individual causes and scapegoats, the truth is that this was a systemic failure with profound consequences for America’s economy and […]

Oil Slickonomics – Part 5

Author: David Kotok, Post Date: May 27, 2010

“Any and all injury, loss, destruction and damage arising out of or related to the above described casualty event was not caused or contributed to by any fault, negligence or lack of due care on the part of Petitioners…” This was excerpted from the May 13, 2010 motion filed by Transocean in the Federal District […]

Coping with Geopolitical Risk: The Case of Thailand

Author: Bill Witherell, Post Date: May 26, 2010

Investing in emerging markets tends to involve a higher level of geopolitical risk than investing in the markets of the United States and other advanced economies. Even though emerging markets generally have become more stable in recent years, there remains in most cases the risk that adverse geopolitical developments could cause even a robust equity […]

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