Displaying items by tag: bear market

Monday, 14 March 2022 20:38

Global Oil Surge Puts ESG on Backburner

ESG and other socially conscious investing is all fine and dandy when energy prices are modest, however the sharp spike in energy has many reorganizing their priorities. There was already an upward trajectory pre-Russian invasion due to OPEC+ supply constraints but that has escalated with Biden’s latest sanctions. The war is putting pressure on key commodities that are slowing many green energy initiatives and renewable policy proposals. More Americans than ever are worried about the prices at the pumps and calling for expansion in drilling to expand supply. So no matter the political pressure ESG is facing an uphill climb at the moment.


Finsum: This could put more pressure on long term green energy proposals as this crisis highlights dependence on fossil fuels.

Published in Eq: Energy
Thursday, 10 March 2022 22:47

Bain says Turmoil Could Halt Private Equity

Private equity set many records for itself in 2021 with gigantic inflows and huge market outperformance, but could that all be slowed in 2022 by an escalating Russia-Ukraine conflict and inflation? Bain & Co said that steeper capital costs driven from these two scenarios will undercut PE as an asset class in 2022. Inflation will hurt growing PE investments and the cheap flow of capital is being reduced by the conflict. There are huge risks that valuations will be much flatter from this point out. This means that the huge inflows and record-setting outperformance might not hold up in 2022.


Finsum: 2021 inflows were already higher than market expectations a natural correction could have been in place, but this could be more severe than just a standard correction.

Published in Alternatives
Thursday, 24 February 2022 23:48

ESG on the Verge of a Scandal

Environmental, social, and governance investing have been one of the largest sources of outperformance in the last two years, however, a mis-selling scandal could be coming to ESG investing. Most investors know mis-selling scandals from PPI, endowment mortgages, and diesel cars. ‘Greenwashing’ is not new by any means but high-profile cases with DWS and BlackRock are both escalating. BlackRock whistleblower Tariq Fancy said this could just be the beginning and that a combination of marketing hype and false promises could cause more scandal in the upcoming years. The difference will be if funds are on the hook for the language they put forth and that the Paris Agreement could be critical to holding them accountable.


Finsum: ESG investing could be reaching its peak performance, time will tell howgGovernments begin the crackdown.

Published in Eq: Tech
Wednesday, 02 February 2022 19:13

Goldman and Morgan Get Very Bearish

David Kostin, a strategist at Goldman Sachs Group Inc., took a bearish tilt on U.S. stocks worrying about risks that may be on the road ahead. Goldman is far from the only bear on Wallstreet, Michael Wilson of Morgan Stanley says that the fair value of the S&P 500 is closer to 4,000. This would be a 10% downturn in the S&P if fully realized. Goldman isn’t that pessimistic but if real U.S. treasury yields rise 60 basis points then that will be their baseline. The median forecast is still quite positive for the S&P 500 by the end of the year with a target price close to around 5,100. However, Wallstreet says the antidote is to focus on quality and energy stocks.


FINSUM: Wall street is forgetting how bad sustained realized inflation will be for the market; it's without a doubt the biggest risk, because companies are used to operating with systematic sub 2% inflation.

Published in Eq: Total Market
Wednesday, 26 January 2022 12:21

Has Biden Has Lost Touch With Inflation?

Inflation is picking up as PCE and CPI numbers are setting decade-long records, and the Fed is rapidly trying to regain control. The American people are beginning to show signs of angst as 65% of American’s say that Biden’s admin has not put enough attention on handling inflation and almost 60% say the same thing about the economy. This comes a swathe of low approval rating numbers come in where he has fallen almost 20 percentage points all the way down to the low 40’s. Overall about half of Americans say they feel frustrated and disappointed in the Biden admin. Biden’s focus has been on a series of regulatory and economic-centered packages, and many American’s don’t feel he is focusing on the issues they ‘don’t care about’.


FINSUM: Biden should stop pushing for another big fiscal package immediately if he has any hopes of reigning in inflation in 2022.

Published in Bonds: Total Market
Page 9 of 61

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…