Archive for July 2020

Cash – the latest casualty of COVID-19?

The outbreak of COVID-19 has moved significant portions of the economy online and has transformed daily consumer behaviour patterns. The use of cash, while not having proven links to COVID-19’s transmission, has been advised against by the UK government. This, coupled with the largest online retail surge in recent history, means the once fundamental payment…

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Consumer Discretionary Stocks: breaking the cyclical tide

Consumer discretionary stocks tend to follow the cyclical nature of the economy and market trends: underperforming the market in a recession while, conversely, outperforming in times of boom, as shown by Figure 1. This is because the consumer discretionary sector encompasses companies not essential for everyday living, covering luxury goods such as holidays and coffee…

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Are food delivery services really a good investment?

At first glance, food delivery services do appear to be a good investment. With two-thirds of Americans now ordering food delivery online and with vast growth opportunities (given the low penetration of the possible $350 billion U.S. restaurant market), it seems that third-party food delivery service companies (or aggregators) should be a sound investment. Morgan…

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Have we leveraged to tipping point? – A case study of America

Two primary methods of raising capital exist for companies through every stage of development. These are equity and debt. Equity financing involves the sale of a percentage share of a company to investors in order to obtain new capital to reinvest in said company. Debt financing on the other hand involves the withdrawal of a…

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UK Housebuilders: Genuine Value Stocks or an Investor’s Mirage?

Value investing, an investing paradigm that involves buying equities that appear to be under-priced using various fundamental analyses, has been out of favour during the last ten years on account of its underperformance relative to other investing methods. In fact, it performed 2.1% worse than the growth investing method between 2009 and 2019. Yet it…

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The New Immigration policy for 21st century Brexit Britain

According to law Professor Thom Brooks of Durham University, the UK’s novel points-based immigration policy marks Britain’s departure from ‘one of the greatest accomplishments of the European project’: freedom of movement between states of the Union. The irony of a centrally planned immigration policy designed to satisfy a government insistent on the powers of the…

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How the Luxury Fashion Market has been impacted by COVID-19

Whilst far from the worst hit market sector, high-end luxury fashion brands have undoubtedly been impacted by COVID-19, ‘fac[ing] challenges never seen before,’ as reported by the world’s leading advisor to the global luxury goods industry in the Bain & Company Luxury Study 2020 Spring Update.  This has largely resulted due to lockdown measures causing…

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