Re-Rate

From both a social and economic perspective, the new year and new decade has gotten off to a very rocky start, with the Covid-19/Coronavirus health crisis currently unraveling day-by-day bringing to a standstill major economic activity across the globe. From the disruption of supply chains in China, the ban on travel from major cities to another, to the hoarding of essentials household goods, the impact on economic activity and business may be felt for many years to come. With the social effects being exposed as developments unfold, the economic impact comes on the back of a decade-long equity bull markets which some have described as one of the most hated in history, perhaps due to the fact that it has been driven by record interest rates which have driven stocks to multiples above their long term averages. With the levels at which equity markets traded at, many market participant correctly positioned themselves for a fall while others saw major indices continuing to...

I happened to be online last week, following some of my global peers and again noticed something that has been a recurring feature: even the most experienced and well-respected technical analysts still have a tough time in selling the discipline as a viable tool in financial markets. Yes, there are are myriad of ways to make money in the market, which includes Fundamental, Quantitative, Quantamental and many more but when it comes to technical analysis there is often a great deal of doubt that the outcome is less reliable than most other forms of analysis. Peter Brandt, who has been in the business for 45 years is one of the gentlemen who has been successful but is still doubted, while J.C Parets, who services hedge funds and other institutions ofetn describes how thought of as 'voodoo' by the rest of the market. One of my acquaintances who previously traded at a large boutique asset manager and now works as a hedge fund manager, describe to me how Technical Analysis is con...