Weekly Wrap by Pythagoras Investing : US market wobbles

Fiscal Stimulus v Monetary Policy Fiscal policy is how a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. It is the sister strategy to monetary policy through which a central bank influences a nation’s money supply and interest rates. Monetary policy – there is nothing really left to be done. Fiscal…

Weekly Wrap by Pythagoras Investing : Technology Stocks

A few little questions we address this week. Can the bulls and the bears both be right about stock markets? Why would growth/technology stocks become so highly priced? What have interest rates got to do with growth and technology stocks? Are growth and technology stock values sustainable? What can change? Buy Now, Pay Later Examples. …

Weekly Wrap by Pythagoras Investing: Reporting Season

Reporting Season August was the fifth successive month of growth, albeit modest.  With earnings season finished we can now make some overall observations.  Earnings per share in the second half of financial year 2019/20 fell by 38%.  The worst of the earnings fall in the 2008/09 GFC was about 20%.  This health induced recession has…

Weekly Wrap by Pythagoras Investing: 21 June 2020

Financial markets are paranoid about an acceleration in new coronavirus cases, driven by the concern about a larger and longer global recession than expected.  This concern was sparked by outbreaks in Beijing, Tokyo and the continuation of problems in US. Therefore, the market recovery is based on a reduction in social distancing practices but not…

Weekly Wrap by Pythagoras Investing: 14 June 2020

Oil had its first weekly decline in over a month, dragged down by the broader selloff. OPEC confirmed a continuation of supply cuts with “overproducing nations” forced to pull back production into the future.  This will stop the downward pressure on price which existed 6 weeks ago. At the same time, we have the start…