Plus: market euphoric over Fed rate decision, value stocks underperform, the sanity and nonsense of stablecoins and more.
The market is pleased with the Fed’s decision
Monetary economist Edin Mujagic analyzes in detail the Fed’s latest interest rate decision. He understands that the markets reacted euphorically. And: He wouldn’t be surprised if the US Federal Reserve cuts interest rates in 2023. Morningstar also has a clear opinion.
“There has never been a better time to buy stocks.” – – Alan Greenspan, New York Times Business Section, January 4, 1973, a week before the start of the 45% decline. https://t.co/TLP6bBSxNa
— Tom McClellan (@McClellanOsc) 28 July 2022
Not value stocks do poorly, but value indices
Value stocks don’t have the best reputation. This is largely because their benchmarks are incorrectly constructed, according to the institutional investor.
High yield opportunities despite inflation and recession risks
PGIM Fixed Income estimates that there are good opportunities to create value within high-interest bonds in the medium term. “The number of defaults will not be as high as during previous recessions.”
Emerging markets: Inflation is not the problem
“Weakness in the exchange rate in the face of a strong US dollar is a bigger concern for Asia than inflation.” Taimur Baig, CEO of DBS Bank in Singapore, told CNBC.
New ECB purchase program is toxic
“It is unclear why the European Central Bank has introduced a new asset purchase instrument instead of using its existing direct monetary transaction facility. By protecting countries from both market forces and political commitments, the Transmission Protection Instrument risks destabilizing the European Monetary Union. “ That’s what some economists write for Project Syndicate.
European companies seem unaffected by the energy crisis and fears of recession
— Zoe Schneeweiss (@ZSchneeweiss) 28 July 2022
The food industry is still doing good business
“Now that we’ve seen the half-year numbers for A-brand manufacturers such as Unilever (AS:ULVR), Danone (EPA:DANO) and Kraft Heinz (NASDAQ:KHC) last week, things don’t look so bad,” writes Krist Plaizier from Fintessa. .
But what if existing orders have been eliminated?
— ABN AMRO EconBureau (@ABNAMROeconomists) 28 July 2022
Top 4 investment books
Hard up, hard down
This is a remarkable interest rate development. The Dutch ten-year-old follows closely.
— jeroen blokland (@jsblokland) 28 July 2022
Active vs Passive
The return of the IEX Fund 40 (actively managed mutual funds) and the IEX Index 20+ (ETFs).
The sanity and nonsense of stablecoins
— SchrodersNL (@SchrodersNL) 28 July 2022
Is Holland’s most sustainable insurance company?
asr has been named the most sustainable insurance company in the Netherlands by the Fair Insurance Guide. A score of 89% was more than enough for asr to finish at the top of the rankings. VGZ (78%) and Achmea (74%) finished second and third respectively.
Dutch inflation continues to rise
Everyday life has again become considerably more expensive. The first figures for July show that inflation is 11.6 percent. In June, it was still 9.9 per cent. Statistics Netherlands has the figures.
That Editors of IEXProfs consists of several journalists. The information in this article is not intended as professional investment advice or as a recommendation to make particular investments. Editors may hold positions in one or more of the listed foundations. Click here to get an overview of their investments.