Infrastructure construction industry: the engine for economies

a cura di Dagong Europe Credit Rating “The global infrastructure construction market is expected to double in 10-years’ time, reaching approx. USD 9Tn” says Richard Miratsky, Head of the Corporates Analytical Team. “Despite sovereign budget constraints, we expect the stable European and American infrastructure sectors to provide good risk mitigation for the infrastructure project portfolios...

Developed or Developing

di Walter Snyder, Swiss Financial Consulting Several indices draw a distinction between developed and developing countries even though it is not always clear on what basis this distinction is made. The difference is important because asset managers often base allocation on indices. One aspect of the problem is that most indicea are the product of companies based in the US or Europe, which results in...

Emerging Markets spread carry continues

A cura di Luc d’Hooge, analista di Vontobel In our previous fixed income Note-it we outlined our view that the fundamental deterioration in China is not as bad as the price action and the news flow suggests. In fact, as spreads are trading above 400 basis points at the wide end of the range of the last years, we continue to think that these are good entry levels. However, some of our readers...

The Sustainable Active Investing Framework: Simple, But Not Easy

A cura di Wesley R. Gray, Alpha Architect The debate over passive versus active investing is akin to Eagles vs. Cowboys or Coke vs. Pepsi. In short, once our preference for one style over the other is established, it becomes a proven fact or incontrovertible reality in our minds. This post is not meant to convert a passive investor into an active investor; however, we do explain why we believe some...

Crisis Alpha: Surprising Ways to Hedge Stock Portfolio Risk

A cura di Wesley R. Gray, Alpha Architect Investing in the current environment is difficult. Most, if not all, asset classes have high nominal prices, suggesting low nominal expected returns. Not exactly exciting. And for many investors who are retired and/or have near-term liquidity needs, investing in equity exposures–while necessary to generate higher expected returns–also prevents many investors...

Diversification: How Many Stocks Is Enough?

A cura di TheGuruInvestor.com In his bi-weekly Hot List newsletter, Validea CEO John Reese offers his take on the markets and investment strategy. In the latest issue, John looks at the issue of diversification and the performance of different-sized portfolios that he runs on Validea.com. Excerpted from the May 11, 2012 issue of the Validea Hot List newsletter No one — not Warren Buffett or Peter...

How Many Stocks Is Too Many?

A cura di TheGuruInvestor.com One of the key questions any investor must grapple with is, “How many stocks should I own?” Jonathan Burton addresses that issue in a recent MarketWatch column, taking a look at focused funds — those that hold relatively few stocks compared to most other mutual funds. “Focused funds — portfolios with only a couple of dozen holdings — are getting attention in...

The Risks Of (Over-)Diversification

A cura di TheGuruInvestor.com While many mutual fund managers have hundreds of stocks in their portfolios as a way to diversify away stock specific risk, James K. Glassman says you can get nearly the same diversification benefit with many, many fewer holdings. “One reason fund managers own a lot of stocks is that diversification dampens risk, which I define here as volatility—how much an investment’s...

Banque de Luxembourg mantiene l’asset allocation al 6% sui titoli auriferi

a cura di Guy Wagner, cio Banque de Luxembourg In the second quarter, the gold price was at its lowest since the first quarter of 2010, averaging USD 1,194 per ounce. Since the end of June, it has fallen a further 7%. Various signs point towards a sell-out on the gold market: – on the New York futures market, the long positions of speculative investors are at their lowest level since December...

Get Ready for the Next Crisis

di Walter Snyder, Swiss Financial Consulting It seems that the present situation in some respects is merely a continuation of the usual economic ups and downs while there are other indications that a crisis is soon to befall the global community. Stocks prices have been going up in the US and the EU, interest rates are historically low, sovereign debt is unduly high in the so-called developed world,...