Investment – Page 11 – Strategy and Management Consultants

The January Effect:

One might be hearing this phrase “The January Effect” circulating around a lot but what does it actually mean? In investment and trading terms, it is recognised as the increase in stock prices throughout the month of January. Often following a decrease in stock price of the previous month. The reasons for this are relating to tax loss harvesting, investment of end of year bonuses, consumer sentiment and mutual fund managers hoping to purchase and reshape their portfolios. To prepare oneself, you must research a company’s financial health. This includes: revenues, g

by Think Tank January 3, 2022January 3, 2022 Leave a Comment

alternative assets, Investment, Macro Economics, Market Commentary

A small contango born out of COVID 19 Third Wave

Brent spread flipped into a small contango. Contango is a situation where the futures price of a commodity is higher than the spot price. Reason: Physical crude markets are indicating that demand is lower, much more so than the futures market. Background: a. New pandemic curbs; b. Slow vaccine rollouts in Europe Boris Johnson has warned the effects of a third wave of coronavirus will "wash up on our shores" from Europe. Extended lockdowns are being driven by the threat of a third wave of infections, with a new variant of the coronavirus on the continent. Con

by AAMEVOL March 23, 2021March 23, 2021 Leave a Comment

Macro Economics, Market Commentary

Inflation? “Not yet.” Reset Markets? “Not yet.” Tapering? “Not yet.”

Fed Chairman Jerome Powell quietened the market with just two words on Wednesday: “Not yet.” Powell’s comment sent yield on the 10-year Treasury bond tumbling and helped equity markets in US and Europe to recover from deep red to green. The US indices ended in the green, while the US dollar slumped over 0.5 per cent. “Not yet” to the expectation that the US Federal Reserve have to move earlier than expected to taper its bond purchases and consider interest rate hikes. "Tapering" is the gradual reversal of a quantitative easing policy implemented by a central bank to st

by AAMEVOL March 19, 2021March 19, 2021 Leave a Comment

Investment

19 March 2021: Quadruple Witching

In folklore, the witching hour midnight, when supernatural beings are said to roam the earth, brought havoc and bad luck to those unfortunate enough to encounter them. What Is Quadruple Witching? Quadruple witching refers to a date on which stock index futures, stock index options, stock options, and single stock futures expire simultaneously. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September, and December. Quadruple Witching days, al

by AAMEVOL March 18, 2021March 18, 2021 Leave a Comment

alternative assets, Investment, Strategy Consulting

The recent resurgence of SPACs in the US will migrate across the Atlantic to London

What is a SPAC? Special Purpose Acquisition Companies (“SPACs”) are companies formed to raise capital in an initial public offering (“IPO”) with the purpose of using the proceeds to acquire one or more unspecified businesses or assets to be identified after the IPO SPACs are attractive because they allow the investor to co-invest with sponsors that have the requisite industry knowledge, expertise and access to potential acquisition targets that may not otherwise be available to investors through the public markets. The SPAC structure is also appealing because of its “mo

by AAMEVOL March 16, 2021March 23, 2021 Leave a Comment

alternative assets, digital assets, Investment, Strategy Consulting

Why did Tesla buy Bitcoin?

Tesla has put almost 8% of its reserves into the cryptocurrency.As per Form 10-K, on page 23, TESLA states, “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other asset

by AAMEVOL February 12, 2021February 12, 2021 Leave a Comment