Global index developer MSCI (Morgan Stanley Capital International) will announce in mid-June whether or not it will upgrade the UAE to ‘emerging market’ from the current ‘frontier market’, a move which would force fund managers to increase their equity exposures in the Gulf state.
Prior to this action GEM funds are shifting flows to the MENA region, where UAE remained so far underestimated. Read more
Global investors are moderating their earlier exuberance in the face of somewhat lower conviction over global growth, though they remain positive towards equity markets overall, according to the BofA Merrill Lynch Fund Manager Survey for April.
Since the beginning of 2013, appetite for yield has dominated financial market performance. Presently, at the beginning of Q2, markets are entering a period of transition as there is an uncertainty about the markets’ further performance. It is very much likely the monetary-based worldwide economic recovery to continue into 2Q of 2013. Though, in the second half of 2013 the sluggish global economy will trigger fresh worries among market players. Therefore, the massive rotation from bonds to stocks may not actually materialize. In respect, equity investors are very much likely to focus further on high-dividend stocks. Such are the healthcare, consumer-driven and insurance-based stocks. Most probably, defensive currencies demand would also increase. The Swiss franc and Japanese yen are likely to appreciate once risk appetite in financial markets eases. Read more
So Cyprus got its IMF-ECB bail out. But have bank savers elsewhere got the message yet…?
OVER the last 30 years I have seen a lot of changes in the financial markets.
One of the biggest changes by far was the formation of the European single currency – the Euro. Prior to its existence all of today’s 17 member countries had their own currencies. Italy, Spain and Greece, to name a few, were often devaluing their currencies. Doing this was one of their solutions to avoid the pain of economic mismanagement. The pain would still come to the general populace, but it looked spread out more evenly amongst its citizens through inflation. Read more
Apple Inc. investors are not happy with the tech giant’s slow rate of growth during the past six months. That was proved by the 12% drop in the company’s market value last month. In addition, Apple warned that this percentage may continue to increase.
The company can easily fix that problem by putting some of its billions into dividends and stocks or by issuing preferred shares. However, investors know that Apple’s popularity on the market is due to its next-generation consumer products. Now they want to see some more of them. Read more
Gold has been on a bullish ride over the past ten years. But this week we saw the commodity falling to its lowest levels since the last July. In 2011 prices briefly reached a record of over $1,900 per ounce. Now they are nearly $300 down from this former level. Read more
BofA Merrill Lynch Fund Manager Survey Finds Strong Investor Sentiment Consolidating While Equity Valuations Retain Support
Confidence in a strong global economic outlook has consolidated while investors have indicated that they see support from current equity valuations after the recent rally, according to the BofA Merrill Lynch Fund Manager Survey for February.
Most people are actually out of cash most of the time. Especially after 2008, since the financial storm swept the world, “lack of liquidity” became a common expression in personal conversations, during business meetings and within white paper publications.
However, there will always be a certain number of people who never get out of cash and a smaller number of organisations who are indeed stuffed with it or even manage rich portfolios. Read more
‘Great Rotation’ to Equities From Bonds Gets Under Way
Global investors have entered 2013 in buoyant but not yet exuberant mood, according to the BofA Merrill Lynch Fund Manager Survey for January. The new year sees asset allocators assigning more funds to equities than at any time since February 2011, while their confidence in the world’s economic outlook has reached its most positive level since April 2010. Read more
Increasing interest in mining and metals from private equity funds, sovereign wealth funds and state-owned enterprises is set to be a key trend in the sector in 2013, according to Lee Downham, Ernst & Young’s Global Mining & Metals Transactions Leader. Read more