Special Purpose Acquisition Company (SPAC)

Not surprisingly, with rising share prices and a lack of investment alternatives, the temptation for investors to invest the pent-up money on the stock market is increasing. Thus special situation funds of private equity companies have started to provide capital in specific circumstances (e.g. Advent international). Increasingly, IPOs through a shell company without any business activity of its…


Asset Allocation a little different

Black Swans It seems that “black swans” (Nassim Taleb) do appear more frequently than in the past (financial crisis, Corona). Since our time is getting faster and faster, this should not be as surprising as the fact that such events are not supposed to be predictable. Taleb himself has pointed out that it is not only virologists who have been pointing out the dangers of epidemics for…


Dictionary of Equity Market Terms

Given the corona and holiday season, some humour with a serious background is probably more appropriate than a theoretical discourse. The following selection of terms for the letters of the alphabet is not entirely arbitrary but is intended to entertain.   Alpha: Price gain or loss thanks to market-independent factors. A portfolio of solely alpha-positive individual stocks is the Holy Grail…


The dilemma of health versus economy

The emergency phase of the COVID 19 pandemic is slowly coming to an end. No government was prepared for it, and too many failed in the initial assessment but did what they could afterwards. In the current second phase, however, any mistakes will not be easy to excuse. The authorities must better identify the risk factors and take specific countermeasures. These must be explained to the people at…


Risks associated with equity investments

After an upward trend for more than a decade, the first quarter of 2020 has once again made investors aware of the risks associated with equity investments. Although April recovered a good part of the losses, the reasons for this recovery are anything but sound. They are based on the expectation that everything will return to “normality” relatively quickly and that the damage done…


Investment parameters in the 2nd quarter 2020

Politics and economy Strict regulations in private and professional life are intended to contain or control the spread of the coronavirus. Aid packages of USD 2 trillion in the USA and EUR 540 billion in Europe are available to minimize the impact on the respective economies. Both are remarkable considering that the US is spending around 10% of GDP and that Europe was previously unable to agree…


Coronavirus as a catalyst for change

The event described by Nassim Taleb as the “Black Swan” has occurred. Since February 24, 2020, the main stock markets have almost lost last year’s profits. The reason for this was and still is the outbreak of the coronavirus (Sars-CoV-2, COVID-19). Although the coronavirus is a low blow, it also provides an opportunity to rethink previous strategies and processes and to act as a…


Careful share purchase, negligent sale

The old stock market saying “cut your losses and let your profits run” is also understandable to the layman and needs to be proven neither empirically nor theoretically. Nevertheless, stock portfolio managers have difficulties in following this guiding principle and its implementation is inadequate. These conclusions of the book “selling fast and buying slow“, published in…


The game with the fire of debt

Debt is part of the economy, like its counterpart assets and the trade in physical goods. The credit system made a major contribution to the fact that economic development has been consistently positive since industrialisation and society has been able to benefit from it. Whereas the balance of debt/credit had remained more or less in equilibrium until the 20th century, it is now worryingly…