Argonautica

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

2 posts found for October 2013

‘Europe’s economy: the last great recovery trade’

For much of the last five years it has been possible to be bullish on European equities without necessarily having the same enthusiasm about the European economy. We think that this narrative has now exhausted itself: extrapolation of emerging market demand is risky; the merits of quality companies able to compound their profits in an anaemic economic growth environment well recognised. With the European economy finally emerging from its double-dip recession we believe that the main opportunity in…

‘UK Housebuilders’

The positive impacts of government incentive schemes, an underlying structural mismatch in housing demand and supply, together with a recent rise in consumer confidence and mortgage availability have all led to the UK housebuilders* reporting strong results. Notwithstanding all this good news, their share price outperformance has stalled. Investors may now be asking themselves if this is as good as it gets - can earnings expectations rise further from here? We think they can and the key to understanding…