Tag Archives: Market Turmoil

Comment: Market Volatility

Following this week’s stockmarket volatility. Key points: Fundamental elements to market turmoil – sovereign debt concerns and weakening US growth But we believe the past few days reflect investor panic rather than true prospects for global assets There is a significant fundamental element behind the current market volatility, with European sovereigns facing very real problems […]

Lawsuits against UBS and HSBC over Madoff exposure

Madoff – the saga Investors who lost money in the alleged $50bn (€37.7bn) swindle perpetrated by Bernard Madoff have filed lawsuits against UBS and HSBC in New York and Luxembourg, claiming the two banks should have protected assets allocated through “feeder” funds to the financier’s business more carefully, according to a report in the Financial […]

Q&A: Market Turmoil?

Question: Is the market turmoil a sign that markets are not efficient? Answer: The market turmoil is caused by some combination of (i) quickly fluctuating changes in expected cashflows (future profitability), and (ii) variation in investor risk aversion that leads to variation in expected returns (the discount rates for expected cashflows). Both responses can be […]