Azimut Investments - Market Insights
INSIGHTS AND DOCUMENTS
UPDATES FROM THE FINANCIAL WORLD
Anatomy of a strange recession
The covid-19-induced recession is a very unusual one, not only because of how it started (a very rare instance of supply-demand shock), but also for the response to this crisis by policymakers.
Nowadays, the US markets are more reminiscent of the late '90s. In the previous issue, we spoke about the "new paradigm" used for evaluating shares, i.e.: looking at long term expected earnings potential and not the real numbers coming out each quarters.
Unchanged. Looking at just YTD performances, 2020 seems a very boring year, with all major indices and asset classes at, or just below.
Update on emerging markets credit
Jacopo Turolla, Senior Portfolio Manager, AZ Life Azimut’s life insurance
WIND OF CHANGE
Last week, German Chancellor Angela Merkel and French President Emmanuel Macron in a joint call agreed to support a 500 billion-euro aid package (Recovery Fund) to help the European Union recover after the covid-19 pandemic.
MUCH ADO ABOUT NOTHING
On May 5th the Germany’s constitutional court finally gave its long-awaited verdict on the legality of the ECB’s QE undertaken in 2015. The press release contains several issues. Speaking constitutionally, the most important topic is about who has the ultimate decision power amongst EU bodies:
WAITING FOR GODOT
After a wild ride in the first part of the year, and a lot of speculation about what impact the Covid-19 will have on EPS, the ongoing reporting season will hopefully shade some light, even if only the last few weeks of the quarter was really affected by the lockdown.
BETWEEN A ROCK AND A HARD PLACE
After the huge month-long drawdown ended in late March, the rebound that we advocated few weeks back has realized. Fed interventions to rein in the liquidity shortfall was the smoking gun.