Newsletter 1
Commentary Section
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Proin scelerisque tristique maximus. Aenean auctor tincidunt nisl, non feugiat justo commodo et. Duis fringilla ante suscipit nibh semper, vel bibendum risus tristique. Nunc et velit quam. Cras accumsan varius vulputate. Phasellus in rhoncus tellus, eu consectetur eros. Nunc gravida metus in viverra feugiat.
Here, in one email, you can find the details on the latest blog posts at castawaycapital.com along with market commentary and updates to investment themes discussed in older posts.
The Latest Blogs
So far this year, we’ve covered the Greek debt crisis and the opportunities in its wake, investing in Russia as an unloved Emerging Market and capital controls, a feature of investing internationally that investors would do well to review. Enjoy!
European Bank Stocks, Moral Hazard and Untangling Bank Regulations, Part II
Following up on last month’s piece, we’re going to put the theory to numbers with an example to illustrate the impact of capital rules and the various levers they apply on bank stocks. After that, we’ll look at a couple of European bank stock ideas. If you didn’t read the last post, I recommend you do that first.
European Bank Stocks, Moral Hazard and Untangling Bank Regulations, Part I
Published on March 26, 2021 Time is a bit warped in the COVID-continuum. Still, some of us may remember a little less than a decade ago when European financial stability occupied major headlines for what seemed like an interminable amount of time. Bank stocks there were going to implode, and Europe could not get out of its own way to stop them. Amidst increasing regulatory and product complexity,…
A Survey of Capital Controls and Black Market FX: A Refresher for Developed Market Investors
For this first February post, I am stepping back to cover a broader topic important for international investors to understand. We will talk about FX regimes, capital controls, and black market FX—parallel market foreign exchange in PC lingo. Few investors from the US or Europe born after 1980 have never had to deal with the uncertainty surrounding foreign exchange rules, buying, or selling international securities. The dollar has been floating since 1971, and although many European countries have switched from Francs, Lira and D-Marks to Euros, the rules have been pretty straightforward. We’ll let our currency float and occasionally talk it down (rarely up) if it appreciates (depreciates) too much.
Beyond Gazprom Stock and The RSX ETF
The Investment Case for Russia Right Now, Part 2
Following last week’s piece, I wanted to delve into some specific names in Russia, both to consider and to possibly avoid. The background risks and tailwinds discussed in the last post apply to all of these names and should be incorporated into any analysis.
Beyond Gazprom Stock and The RSX ETF:
The Investment Case for Russia Right Now, Part 1
One cannot write long about international and Emerging Markets investing without covering Russia. Russia is a member of the BRICS ensemble and, back in the ‘90s, was the first home-run emerging markets trade of the modern era. Many EM veterans cut their teeth in the ‘98 Russia default and its privatizations earlier in that decade on the equity side. Perhaps ironically, the Russian market’s lack of excitement today makes many of its companies a compelling opportunity now.
