Notes from the Kitchen

Notes from the kitchen - Episode 3

  • Aug 06, 2020
  • Craig Farley
  • Last week’s interesting rotation out of growth into value lasted ….. one week. Shares in the world’s largest company were up nearly 16%. Last week. Sorry, you were worrying about holding depreciating Dollar stocks in your Sterling / Euro portfolios?
  • In the panic for grabbing whatever yield you can, which has pushed bond returns towards 3 Standard Deviations of irrational, the Euro market turns out to have been right all along. The price for this foresight ? 5 Year BBB EUR Corporate yields are nearly 50 bp wider since last August, against 150 bp tighter for similar credits in USD$. ‘Go figure’, as they might say over there.


  • And on the subject of yield, we might be reaching an inflexion point where Gold offers the same yield as 10 Year US Treasuries, but with a much greater potential for inflationary protection. Despite being up nearly 35% year to date (even in the diminishing Greenback) might we be closer to the start than the end of it ?
  • Silver. Just... Silver
  • This week’s conundrum. World leading UK companies that aren’t in Banking, Oil, Tobacco, Retailing, will make it through COVID largely intact, and won’t be hurt by a falling Dollar ? Answers on a post card

TEAM Asset Management is a trading name of Theta Enhanced Asset Management Limited which is regulated by the Jersey Financial Services Commission.