Category: Equity Indices

Market Recap

United States The post-financial crisis US equity rally this week overtook the 1949-56 run to become the second-strongest bull market in US history. The S&P 500 closed the week at $2,500.23, a new record high. North Korea missile tests and possible Fed balance sheet tightening were ignored by the market, that instead focused on the […]

Market Recap 30-04-2017

United States After the French election relief and solid first quarter earnings reports the US equities finished the week higher. Slightly more than half of the S&P 500 has reported, showing positive signs of improving economic growth, with best performers tech and industrial companies. The S&P 500 after the rally at the beginning of the […]

Are There Free Lunches? Evidence from Stock Markets

Introduction In this article, after a brief introduction to efficient market hypothesis and the very basics of technical analysis, we implement two different trading strategies based on moving averages and few oscillators on a wide set of equity indexes in various countries. The aim is to investigate whether efficient market hypothesis holds across markets of […]

South Korea and Samsung: an Overview

South Korea macroeconomic overview: a tired tiger? South Korea has been one of the fastest growing economies in the world: in little more than a generation its GDP per-capita went from about $1,778, in 1980, to more than $27,000 in 2015. This astonishing growth brought the country into the Next Eleven: the list of the […]

Market Recap 09-04-2017

United States US stocks took a break after last week gains. The S&P 500 fell 0.3% closing the week at 2355.54, while large-caps were flat with the Dow Jones at last week’s levels. One of the major drivers of financial markets was the FED releasing the minutes of its mid-March meeting. The minutes highlighted the […]

Market Recap 12-03-2017

United States The S&P 500 closed at $2,372.60, slightly depreciating when compared with the beginning of the week, where it was standing at $2,375.32, but still higher than the weeks’ low of $2,357.98. Similar was the fate of both the Dow Jones Industrial Average and the NASDAQ, as they closed at slightly lower levels than […]

A Primer on Risk-Parity

The concept of risk parity is not well-known among market participants. However, its resiliency to different market environment makes it a very interesting capital allocation strategy. It was first theorized in the sixties by Ray Dalio – founder of Bridgewater Associates – when he tried to find an answer to the following question: “What kind […]

Market Recap 19-02-2017

United States On the week ended February 17, 2017, US stocks closed at record highs as investor sentiment remains positive given the possibility of changes to US corporate tax structure, as well as the likely loosening of regulations. The Dow Jones Industrial Average increased by 1.4% to 20,624, while the S&P500 increased by 1.2% to […]

A Bull Call Spread for Brazil

Brazil is coming from a three-year recessionary period, with an unemployment rate still above 12%. Despite this, the Bovespa index (IBOV), which is the top equity index for the Sao Paulo Stock Exchange and has 59 components, is up almost 10% since January 1st 2017 and up 70% since January 2016 (Chart 1). The current […]

US and Eurozone: expectations upside down

It is widely known that the USA and the EU are in different economic conditions: the American economy has risen from the crisis and the FED is tightening the policy, while Draghi, the president of the ECB, declared that they will keep the quantitative easing going. Unemployment in the US is near its natural rate, […]

Market Recap 12-02-2017

United States Last week saw US equities slightly increasing in a low-volatility environment. Indeed, the S&P 500 closed 0.81% up from last week close, while the Nasdaq and the Dow Jones closed on Friday up 1.18% and 0.92% respectively from the previous week. The VIX index floated between 10.5 and 11.7 continuing to show the […]

Trumponomics: Feeding the Bull Steroids

Donald Trump’s economic policies focus on three key areas; protectionism, loose fiscal policy and deregulation. In this summary report, we will give an overview of Trump’s policies before exploring the effects that they have had on financial markets. For conciseness, we will not look at Trump’s immigration policies and plans to ‘clean up Washington’. Protectionism […]

Market Recap 27-11-2016

United States Not really a Black Friday for the US stock market. All the three major indexes continued their rally closing at historical highs and with similar gains. The S&P 500 closed at 2,213.25, up 1.4% from last week, the Dow Jones closed at 19,152.14, up 1.5% while the Nasdaq closed at 5,398.92, gaining 1.5%. […]

Special Report: When the Bull Bursts the Bubble, the Bear Arrives

The main purpose of the following Special Report is to understand how bear and bull markets develop over time and how it is possible to forecast their path. With respect to forecasting bear markets, our focus will be on non-parametric models developed following the algorithms of Bry and Boschan (1971). This will lead us to […]

Market Recap 20-11-2016

United States On the week ended November 18th, stocks continued their post-election rally. Investors appear optimistic of President-Elect Donald Trump’s proposed expansionary fiscal policies. The Dow Jones Industrial Average ended a seven-trading-day post-election rally on Wednesday, during which it gained more than 5.7% reaching a new all-time high. The S&P 500 index gained 0.6% to […]

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