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A Follow up on Inflation: The Disparate Effects on Company Values!

Musings on Markets

In general, higher and more volatile inflation has negative effects on all financial assets, from stocks to corporate bonds to treasury bonds, and neutral to positive effects on gold, collectibles and real assets.

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The Importance of (and challenges with) Valuing Intangibles

IVSC

This quote, attributed to Dale Carnegie, encapsulates the problems of valuing intangibles: they are hard to define, even harder to measure, but are becoming increasingly important to investors’ understanding of a business’s performance and prospects.

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Data Update 3: Inflation and its Ripple Effects!

Musings on Markets

Inflation numbers have been coming in high now, for more than a year, but for much of the early part of 2021, bankers, investors and politicians seemed to be either in denial or casually dismissive of its potential for damage. The Fed, Interest Rates and Stock Prices: Fighting the Fear Factor.

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Data Update 1 for 2023: Setting the table!

Musings on Markets

Data: Trickle to a Flood! It is perhaps a reflection of my age that I remember when getting data to do corporate financial analysis or valuation was a chore. As I noted in my posts on data disclosure last year, this has led to at least three unhealthy developments.

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Russia in Ukraine: Let Loose the Dogs of War!

Musings on Markets

As the world's attention is focused on the war in the Ukraine, it is the human toll, in death and injury, that should get our immediate attention, and you may find a focus on economics and markets to be callous. to 25% for the Eurozone.

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Is Hyundai’s Parallel Strategy a Potent Value Play?

Andrew Stolz

Price signal unclear, but volume supports bullish signal. Recently, the 50 DMA closed the gap to the 200 DMA line. Hyundai has allocated 2022 CAPEX of US$1.1bn, roughly 15% of its total CAPEX budget, to develop two further fuel cell plants. Scale from 1 (Best) to 10 (Worst).

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Interest Rates, Earning Growth and Equity Value: Investment Implications

Musings on Markets

The answers are not academic, since they cut to the heart of how stockholders will do over the rest of the year, and whether value investors will finally be able to mount a comeback. Coming in 2020, the ten-year T.Bond rate at 1.92% was already close to historic lows.

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

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Data Update 2 for 2022: US Stocks kept winning in 2021, but…

Musings on Markets

In a post at the start of 2021 , I argued that while stocks entered the year at elevated levels, especially on historic metrics (such as PE ratios), they were priced to deliver reasonable returns, relative to very low risk free rates (with the treasury bond rate at 0.93% at the start of 2021).

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The Zomato IPO: A Bet on Big Markets and Platforms!

Musings on Markets

Zomato, an Indian online food-delivery company, was opened up to public market investors on July 14, 2021, and its market debut is being watched for clues by a number of other online ventures in India, waiting in the wings to go public.

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