Investment - Bamboos Consulting

The Recovery Shape is W, hopefully…

By Roberto | June 21, 2022

Many shapes for different economic recessions and hopes. A V-shaped starts off with a sharp decline, followed by a strong recovery. A U-shaped starts off with a more gradual drop, once hits bottom it stays there for some time prior to bouncing back. An L-shaped recession, the worst one, starts with a sharp decline in economic activity followed by a very slow recovery period. A W-shaped has GDP, employment, industrial output sharply declining and rising for two times in a row…

Optimization

Optimization theory has developed from the earliest approaches of De Fermat, Lagrange, Newton, and Gauss through the formalization of Linear programming in 1939 by Kantorovich, the Simplex method of Dantzig and the Duality Theory of von Neumann in 1947, and the Karush-Kuhn-Tucker condition in 1951. Its application disrupted logistics, banking, and economics. In 1960, the…

The 2021 Recovery

By Roberto | November 12, 2020

From the Balance of Payment it is possible to understand the amount and direction of the net capital inflow (or outflow). Indeed, making an educated guess on the new locations for investment and trade may make the difference in investing after the epidemic.

Macro Indicators in the Aftermath

By Roberto | November 9, 2020

The current status of the economy of the US is relevant for many other countries; thus, it is important to understand the strength and resiliency of its economy.

Sentiment Analysis

By Roberto | October 25, 2020

In finance, sentiment refers to the measurement of the excessive confidence, either positive or negative, of investors in a specific situation. The fundamental reason why it is studied is because psychologists determined sentiment as a relevant factor affecting the judgement and decisions of investors.

The Geopolitics of Currencies

By Roberto | September 23, 2020

The 1944 Bretton Woods agreement jumpstarted the dollar into its reserve currency status. While economists proposed global trust and confidence in the US ability to pay its obligations, a more compelling justitification has its roots in United States’ political influence.

Assessing the Impact of Modern Monetary Policy on Citizens and Small Businesses

By Roberto | August 16, 2020

With respect to the COVID-19 impact, it has not passed unobserved that the $3.3 trillion issuance of debt securities in the first half of 2020 has been purchased only by the U.S. Federal Reserve (46%) and national/international private investors (40%); instead, foreign central banks, already holding trillions of dollars of U.S. Treasuries, did not acquire a significant amount. In other terms, it seems the U.S. is substantially moving to own its debt in what we can define a Japanese way of managing the economy; probably, other developed countries will soon engage in similar practices.

Entering Recession with Covid-19 and Deflation

By Roberto | March 11, 2020

Epidemic models may help in assessing the impact of COVID-19 on the economy as well as to understand the market’s interpretation of the virus impact. In this respect, Shiller’s narrative economics may provide insights with wider practical implications than behavioral economics.

Finally Sector Rotation?

By Roberto | January 9, 2020

Between the practice of trading and the academic empirical studies lies the sector rotation. On on hand, most evidence about business-cycle rotation suggests it doesn’t work whereas, on the other, practitioners have employed value-based sector rotation with some success. After a short review, my suggestion for the coming months…

Where is the Equity Risk Premium in the Stock Market Cycle?

By Roberto | November 5, 2019

The fluctuations of equity prices are attributed to the competition of firms for the limited funds of investors; as a result, demand and supply achieve the equilibrium summarized in the most competitive expected rate of return adjusted for risk.

Category: Investment