Quarterly Bulletin Q4 – 2014


Risk Taking is Still in Fashion

At long last Q4 2014 saw the return of volatility to financial markets, a healthy and even desir-able event for markets which lately have been a little too linear. While the US, UK and Canada seem to be planning an increase to their prime rates in 2015, Europe is going in the opposite direction, injecting stimulus wherever they can. Across the Pacific, Japan continues its “monetary experiment” by flooding its economy with liquidity 4-5 times what the US employed in its post-crisis programs. Central banks pur-sue diametrically opposed paths, and while investors are questioning the impacts, they are not modifying their allocation to risk, at least for the time being…




Even though the period was marked by an unusual combination of upward trends, on both the equity and bond markets, and by a remarkable about-face by the U.S. Federal Reserve (the Fed), the Amethyst Fund performed well at the start of the year. The Fund’s three segments were able to seize opportunities and deliver attractive […]


In the fourth quarter, the economic and political news was marked by a synchronized global economic upsurge, rapidly expanding corporate profits, the adoption of a sweeping tax reform bill in the U.S. and somewhat eased geopolitical tensions.


A multitude of risk factors have unsettled the markets during the first six months of the year.


Fortunately, the North American economy continues the expansionary momentum en-joyed over the last 5 years. Despite some ambiguous data, the improving economic conditions are palpable. We do not see any signs of a pending recession, therefore North American equity markets should do well. The risks perceived by investors are related primarily to three concerns.


Q3 2014 allowed some financial terms, absent from our lexicon for several years to resurface. Indeed, despite globalization which has been accelerating for decades, many economists and investors are now once again arguing in favor of the “decoupling” of economies to the benefit of the US and UK and to the detriment of Europe and […]