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Nathan Kowalski

Nathan Kowalski is the chief financial officer of Bermuda-based investment firm Anchor Investment Management Ltd. He holds Chartered Accountant, Chartered Financial Analyst and Chartered Investment Manager designations. He is currently the president of the Chartered Financial Analyst Society of Bermuda board. Mr Kowalski started his career with KPMG, where he provided assurance, tax and financial advisory services for some of the largest corporations in Canada. He then worked for Deloitte & Touche Corporate Finance Inc, where he specialised in providing advice on mergers and acquisitions, valuations for corporate clients and private-equity firms, entrepreneurs and governments.

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  • Favourable bond rate gives Bermuda a window
    Oct 24, 2016 8:00 am

    Favourable bond rate gives Bermuda a window

    Most readers will be familiar with articles I have penned on Bermuda’s debt in past issues of Financial Ramblings from the Rock. The recent refinancing conducted by the Bermuda Government is resurrecting this commentary. I swore to avoid a quotidian writing on the sovereign debt situation unless something material changed. Well, something has. Bermuda’s government, not unlike many other nations, has been given a reprieve. A window if you like...

  • Is your cash and ETN safe?
    Oct 3, 2016 8:00 am

    Is your cash and ETN safe?

    Changes in regulation and market conditions often introduce some unanticipated dislocations in markets. Two recent developments have or may have a dramatic effect in two areas that many investors may not be aware of or appreciate. I am referring to the Securities and Exchange Commission’s rules on money market funds and troubled Germany banks.

    <b>Is your cash really cash?</b>

    A new set of SEC rules is amending...

  • Tax creep and some implications for Bermuda
    Sep 19, 2016 8:00 am

    Tax creep and some implications for Bermuda

    Apple’s huge cash hoard is very tempting. Especially for governments which are unable to control their ever escalating public debts and spiralling entitlement deficits. The recent case where the EU decided that Apple had received illegal state aid from Ireland and that the technology company should pay 13 billion euros in additional corporate income tax (plus interest) to Ireland simply highlights the almost silent shift we are seeing in...

  • Safe is getting a lot more risky
    Aug 29, 2016 8:00 am

    Safe is getting a lot more risky

    The market continues to march higher. Looking under the hood, however, gives one a more granular view of what areas seem to be leading the charge. Specifically it is the areas of the market that proffer a narrative of safety and income. The safety these areas are offering, however, appears to be getting less so.

    The poster child over the last year has been the low volatility and high dividend trade. Take a look at this chart depicting...

  • Moving Bermuda’s ‘cheese’
    Jul 18, 2016 8:00 am

    Moving Bermuda’s ‘cheese’

    Years ago I read a book called <i>Who Moved My Cheese?: An A-Mazing Way to Deal with Change in Your Work and Life</i> by Spencer Johnson (https://www.amazon.com/dp/B004CR6AM4/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1#navbar). It’s an excellent book that tells an interesting allegory about dealing with change. Two...

  • Brexit or Bremain?
    Jun 13, 2016 8:00 am

    Brexit or Bremain?

    “Brexit would see the UK return to its status as a cake-filled misery-laden grey old island.” - Emma Thompson, actress

    The world is rapidly shifting into a realm of less social cohesion and integration. As evident by the rise in popularity of polarising political figures such as Donald Trump, Marine Le Pen, Bernie Sanders and various other extreme political groups around the world.

    The status quo and established political...

  • Real value of the Bermuda dollar
    May 30, 2016 8:00 am

    Real value of the Bermuda dollar

    “The value of a currency is, ultimately, what someone will give you for it — whether in food, fuel, assets, or labour. And that’s always and everywhere a subjective decision.” - James Surowiecki

    Every day millions of local transactions are conducted with the Bermuda dollar. Most people go about their daily lives without an afterthought of conducting business with our colourful currency. The fact that little concern is noted suggests...

  • What my mom taught me about investing
    May 9, 2016 8:00 am

    What my mom taught me about investing

    We all likely have some great quotes and lessons we learnt from our mom while growing up. Here are a few quotes from my mom that you can apply to investing.

    1. Look both ways before you cross the street!

    In this case she meant consider both the good and the bad aspects of an investment. It is unwise to potentially walk into oncoming traffic or in this case rush into an investment, without first considering all the risks and...

  • Central bank rock stars
    Apr 11, 2016 8:00 am

    Central bank rock stars

    Nickelback is one of my favourite rock bands. A group of guys from Hanna, Alberta, Canada who have created a number of great hits. One of my favourites is <i>Rock Star. </i>

    After listening to the tune I couldn’t help but think of central bankers. That’s right, when I listen to rock I like to meditate on central banking actions.

    Since the Great Recession, the central bankers of the world have become the rock stars of...

  • Warren’s wisdom
    Mar 7, 2016 8:00 am

    Warren’s wisdom

    <i>“It’s easy to look back over the 115-year span and realise how extraordinarily beneficial agricultural innovations have been — not just for farmers but, more broadly, for our entire society. We would not have anything close to the America we now know had we stifled those improvements in productivity. (It was fortunate that horses couldn’t vote.)” </i><b>- Warren Buffett</b>

    The Berkshire...

  • Bermuda’s tightrope walk
    Feb 23, 2016 8:00 am

    Bermuda’s tightrope walk

    Nathan Kowalski, Financial Ramblings from the Rock

    On August 7, 1974 French high-wire artist Philippe Pettit took a walk between the Twin Towers of the World Trade Centre. The young French acrobat had to contend with winds, the natural sway of the tower and the logistics of setting up a solid line to balance on. A difficult feat to say the least.

    Bermuda is doing its own tightrope walk. It has myriad items to balance as it makes...

  • China and oil: investors’ major concerns
    Feb 8, 2016 8:00 am

    China and oil: investors’ major concerns

    January was not a kind month for equity investors. The volatility was discerning and uncomfortable. While markets may correct further (nobody knows for sure) it’s very important to realise that market sell-offs are par for the course. In times like these it is important to focus on your long term plan and what you own. I believe that it is axiomatic that while capital flows will drive market values in the short term, valuations will drive...

  • Twelve possible surprises for 2016
    Jan 18, 2016 8:00 am

    Twelve possible surprises for 2016

    “Never make predictions, especially about the future”

    — Casey Stengel

    “Every year I talk to the executives of a thousand companies, and I can’t avoid hearing from the various gold bugs, interest-rate disciples, Federal Reserve watchers, and fiscal mystics quoted in the newspapers. Thousands of experts study overbought indicators, oversold indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money...

  • Review of 2015 surprises
    Jan 11, 2016 8:00 am

    Review of 2015 surprises

    “Humans don’t want accuracy; they want reassurance. The Nobel laureate and retired Stanford University economist Kenneth Arrow did a tour of duty as a weather forecaster for the US Air Force during World War II. Ordered to evaluate mathematical models for predicting the weather one month ahead, he found that they were worthless. Informed of that, his superiors sent back another order: ‘The Commanding General is well aware that the forecasts...

  • The twelve financial ramblings of Christmas
    Dec 21, 2015 8:00 am

    The twelve financial ramblings of Christmas

    What follows is a series of twelve facets in the financial markets for 2015. I’m pretty sure you won’t be able to sing this as a carol.

    1. One Fed Hike. They did it. Finally. Probably a bit late too. The Federal Reserve hikes interest rates for the first time in nine years! We have been at microscopic rates for so long it’s beginning to feel like Japan.

    2. Two Markets Diverging. Growth has been beating value for some time. In fact...

  • Should the Fed raise rates?
    Dec 15, 2015 8:00 am

    Should the Fed raise rates?

    Tomorrow we will get the Federal Reserve’s decision on whether or not they will raise the Fed Funds rate. The market has been stewing over a rate rise for what seems like an eternity. I think they will move and the market seems to agree, with the Fed Funds futures pricing in a 72 per cent probability as of this writing.

    But should they? The Fed has what is called a dual mandate: inflation and unemployment. Essentially they are tasked...

  • Three financial aspects to be thankful for
    Nov 30, 2015 8:00 am

    Three financial aspects to be thankful for

    They call economics the “dismal science”. The world often seems far more interested in the awful things going on rather than positive developments. That’s why we rubber-neck when we see car accidents, but airplane landings never make the news.

    Now that Thanksgiving has come and gone I hope all those who celebrate this seasonal break have had a chance to take a moment and think of those things we can be thankful for rather than worry...

  • Paris attacks: the financial impact
    Nov 23, 2015 8:00 am

    Paris attacks: the financial impact

    The investment community is coming to grips with the effects from the horrific attacks in Paris. These abhorrent actions should not be callously dismissed and retribution is being dealt with as we speak. But what of the financial and market effects? The initial reaction, at least as portrayed by the regional stock markets, seems muted.

    The CAC 40 (France’s major exchange), ended only fractionally down on Monday (losing less than 0.1...

  • The Wal-Martization of the world
    Nov 16, 2015 8:00 am

    The Wal-Martization of the world

    Over time prices rise and fall at varying rates. The rate of inflation and its effects on an economy are often talked about endlessly.

    The latest jobs report has significantly increased the likelihood of a December rate hike. But is this rate hike necessary in the face of what appears to be underlying deflationary pressures and weaknesses in many sectors of the economy?

    It’s difficult to cheer a rate rise when sales for the...

  • Back to the Future and a lesson in investing
    Nov 2, 2015 8:00 am

    Back to the Future and a lesson in investing

    “Of all sad words of tongue or pen, the saddest are these: it might have been.”

    - John Greenleaf Whittier

    October 21 was Back to the Future day. This was the day that Marty McFly travelled to from 1985 in the second Back to the Future movie.

    A lot of what was portrayed in the movie never really came to pass: think hover boards and making payments with only your thumb print. It’s very easy to point out what the...


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