"Value is a philosophy, not a factor."
“Economies and financial markets are built on a foundation of trust. Without it, markets become inefficient and governments lose credibility. Nowhere is this more pertinent than for fixed income investors, as purchasing a country’s sovereign bonds requires a leap of faith that the yield available will compensate you for the risks taken for many years into the future.”
“It’ll be hard for anyone to declare the coast is clear on the labour market front until we get the next non-farm payrolls report. Nonetheless, if the Fed is officially at the point where it can prioritize labour market health, and if the job market is already stabilising and improving, then it’s not hard to see why stocks just took the elevator back up.”
“Rate cuts are not always positive for risk assets: the outcome depends on whether a recession follows the beginning of the easing cycle. Reactive cutting cycles are bad for stocks, while pre-emptive ones are good.”