Alice and the White Queen

By | 2017-07-17T12:21:17+00:00 June 9th, 2017|Global Market Update|

Is the market trying to believe impossible things? Illustration: John Teniel. Source: Wikipedia A classic “children’s” book – that isn’t really for children – is Lewis Carrol’s Through the Looking Glass, his sequel to Alice in Wonderland. In the book, Alice and the White Queen have this exchange: “There’s no use trying,” Alice said. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was younger, I always did it for half an hour a day. Why, [...]

Why Trash Cash?

By | 2017-07-17T12:22:07+00:00 March 7th, 2016|Global Market Update|

What good is cash? Photo: Aimee Low. Source: Morguefile Central banks around the world have pushed interest rates to zero. In Europe and Japan, short rates are negative. Bank deposits and money market funds pay almost nothing. Why should investors hold cash? Cash used to be thought of as a weapon, or a market sector. Mutual funds held up to 10% of their portfolios in cash. After all, cash allows managers to move quickly when they see opportunities. And when the market falls, cash [...]

Cash: Trash or Treasure?

By | 2014-09-18T09:51:52+00:00 August 8th, 2014|Global Market Update|

What good is cash? Central banks around the world have pushed interest rates to zero. In Europe, short rates are negative. Most bank deposits and money market funds pay almost nothing. Why should investors hold cash? Cash used to be thought of as a weapon, or a market sector. Mutual funds held up to 10% of their portfolios in cash. After all, cash allows managers to move quickly when they see opportunities. And when the market falls, cash looks pretty good. It may not [...]