It isn’t just your imagination: activist
hedge funds do go after companies led by woman CEOs more often.
If your aim is to spend 4 percent of your
portfolio annually in retirement, the best advice is “I wouldn’t
start from here”.
Bitcoin and other
"cryptocurrencies" are big money, virtually as big as Goldman
Sachs and Royal Bank of Scotland combined.
The Trump administration’s vision of a
rollback in banking regulation isn’t just dubious medicine for
the economy, it will do shareholders no favors.
Money has flowed into
emerging-market bond funds for six straight months and global
equity funds attracted another $10 billion last week, Bank of
America Merrill Lynch said, as it gave its latest warning that
the rally looks set to end.
Active fund managers enjoyed a
slight respite from the relentless rise of passive
index-tracking this week, with the biggest inflow to active
equity funds in two and a half years, Bank of America Merrill
Lynch strategists found on Friday.
China’s all-powerful rulers
are taking arguably needed steps to guard against financial
risks which is exactly why investors should give the country a
Brokers specialising in
researching mid-cap stocks are sharpening their focus and hiring
rather than retreating ahead of sweeping regulatory changes that
on the face of it could hurt their business.
Threats by U.S. President Donald
Trump to rain down "fire and fury" on North Korea preceded the
biggest equity outflows in 10 weeks, Bank of America Merrill
Lynch (BAML) data showed on Friday.
Sterling fell to a
five-week low on Tuesday after July inflation data undershot
market expectations, dealing another blow to expectations of a
rate increase in the coming months.
Institutions do better than individuals at
active fund management, but given that both come out losers the
underlying message is that picking stocks and bonds is a game
neither group should play.
Healthcare stocks suffered their
largest outflows in six months after U.S. attempts to repeal
Obamacare crashed and burned, while appetite for tech stocks
faded after a strong run, Bank of America Merrill Lynch data
showed on Friday.
Financial markets are in the grip of
something very like a speculative mania, which may well be good
reason not to expect a crash soon.
If you invest in mutual funds, no matter
where you live in the world, you are probably doing it wrong.
Demand for long-dated bonds and
the extra yield they offer has boomed over the past decade in an
era of ultra-low interest rates. Yet now, even as central banks
tighten policy, investors show little sign of retreating from
the riskier debt.
Investors may be entering the
age of "stranded assets", and it very likely could be driven as
much by technological change as by climate change.
Not only are the chances of a UK
recession rising, it may be the rare recession in which bond
owners get badly beaten up.
Confronting an economy in which falling
unemployment is failing to kindle inflation, as the supposed
laws of economics say it should, the European Central Bank
counsels “patience, persistence and prudence.”
That fund managers are rewarded for
hugging the benchmarks they track is a big reason behind the
otherwise puzzlingly mild reaction of financial markets to
rising tensions and threats between nuclear powers the United
States and North Korea.
To understand secular stagnation, with its
low inflation and low growth, look first at the growth of the
information economy and the expansion of intangible assets.
Other benefits like peace and a livable
planet notwithstanding, the financial cost of socially
responsible investing appears to be high.
It may not happen soon but eventually
the vogue for investing in “superstar firms” like Google,
Facebook and Amazon will end in the fire of overvaluation or the
ice of regulation.
With equity indexes at all-time highs,
global mutual fund and ETF investors may be choosing now as the
time to reverse a long-running move into bonds and out of
The ECB's quantitative easing
scheme expires at the end of the year and with the economy
gaining strength, expectations are growing that the days of
central bank bond-buying are numbered.
Size does matter in fund management, and
if you are an investor it is not helpful.
Europe's markets watchdog ESMA
has told credit rating agencies to publish their European
sovereign ratings reports in a tighter window, between 9 pm and
11 pm on Friday London time, sources have told Reuters.