Argonautica

Professional investors can review published thought leadership and market updates from the Argonaut Investment Team.

2 posts found for January 2013

‘The Value of Growth’

The most bullish aspect of markets at present is that yield hungry investors are being pushed by the actions of central banks into riskier assets. The lack of apparent value in the bond market remains the most powerful argument for equities. This has led in our opinion to misguided speculation about “bond- like equities”. We have to tell you that no such investments exist. Bondholders fix their remuneration (and have recently been willing to do this at historically low rates of return). Unlike bonds,…

‘Rationalising the parallel universe’

There’s a party in the credit markets, but the real economy seems not to have been invited. Credit spreads having tightened significantly over the last twelve months and interest rates are on the floor, yet GDP growth remains anaemic. Are we living in a parallel universe? With money being optically cheap it is tempting to conclude that all participants are benefiting from a lower cost of debt. You would be right, but only to a degree….. To understand this we have split the universe of participants…