Japan in 1990 and the US today

Nikkei Veritas – Market Eye column, 15th May 2009 Most recessions are due to central banks raising interest rates. Although these recessions, which are usually mild, are unwelcome, they have positive results. Not only can they prevent inflation becoming a...

Dividend ratio’s shift over time

Financial Times – Letters , 14th March 2009 Sir, Your editorial “The double edge of dividend cuts” (March 7) claims that “dividend cuts hit long-term returns”. The standard view (Miller-Modigliani theorem) is that returns are unaffected by payout ratios. The...

The Two Steps still needed for World Recovery

Nikkei Veritas – Market Eye column, 26th February 2009 Two changes are needed before the world economy will recover. Banks must be refinanced so that they can afford to lend more, and demand must be stabilised. At the moment banks can’t expand their loans as...