There is a strong rationale for considering tangible equity when assessing corporate balance sheets. For Western companies, particularly those in the US, the ‘safety net’ of tangible assets has noticeably shrunk in recent years while net debt has increased rapidly; This development carries risks and seems unsustainable. Corporate net debt in the US seems to be on an … [Read more...] about The disappearance of tangible equity in the US
On the surface, value investing seems simple: it’s about choosing stocks that are trading for less than their “intrinsic” or true value. After all, who wouldn’t agree to a deal where one pays less than the market price? Bargains are good! That’s why Value has become one of the most popular philosophical approaches to active equity investing. Born in the 1920s from Benjamin … [Read more...] about Why equity investors continue to look for value
In less than a generation, emerging markets and developing economies have gone from being producers of goods and trading hubs for developed countries, to becoming an important destination for consumer goods and services in their own right. They now account for nearly 80 percent of global economic growth, and 85 percent of growth in global consumption – more than double their … [Read more...] about The shifting economic powers
Markets appear to be having a bit of difficulty navigating the end of QE; as the Fed balance sheet starts to shrink, non-US markets in particular are feeling the strain. … [Read more...] about How changes in the value of the US dollar can impact us all
The potential costs to some companies of insuring their assets against the impact of climate change could equate to more than 4% of their market values, according to our new physical risk assessment. … [Read more...] about How will the physical risks of climate change affect companies?