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from Global Investing:

What’s on your reading list?

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If anyone needed a reminder that Christmas and NewYear holidays are almost here, Societe Generale has provided it. Analyst Dylan Grice has picked up the mantle of the departed James Montier to offer a seasonal reading list for those with a fixation about investment and economics.

True, some people might prefer to immerse themselves in a rollicking sea tale from Patrick O'Brian or a good old  Sookie Stackhouse vampire mystery. But we know that Reuters blogs' readers are a discriminating lot with a keen understanding of and passion for finance. So here is Dylan's list of six must-reads:

1. Manias, Panics and Crashes, by Charles P. Kindleberger;
2. The Essays of Warren Buffet, edited by Richard Cunningham;
3. Reminiscences of a Stock Operator, by Edwin Lefevre;
4. Fooled by Randomness, by Nassim Taleb;
5. The Case against the Fed, by Murray Rothbard;
6. Judgement under Uncertainty: Heuristics and Biases, eds Kahneman, Slovic and
Tversky.

So what is your reading list? Tell us what you would include  and why.

from Global Investing:

Time to kick Russia out of the BRICs?

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It may end up sounding like a famous ball-point pen maker, but an argument is being made that Goldman Sach's famous marketing device, the BRICs, should really be the BICs. Does Russia really deserve to be a BRIC, asks Anders Åslund, senior fellow at the Peterson Institute for International Economics, in an article for Foreign Policy.

Åslund, who is also co-author with Andrew Kuchins of "The Russian Balance Sheet", reckons the Russia of Putin and Medvedev is just not worthy of inclusion alongside Brazil, India and China  in the list of blue-chip economic powerhouses. He writes:

from Global Investing:

Is it time for a Scottish wealth fund?

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Oxford SWF Project, a university think tank on sovereign wealth funds, is looking at reports that the latest entry in the field could be Scotland. The project has a new post about the Scottish government floating the idea of an oil stabilisation fund to use oil and gas revenues.  It cites Scottish cabinet secretary for finance John Swinney looking abroad gleefully:

“We want to harness the benefit of oil revenues now for future years. An oil fund can provide greater stability, protect our economy and support the transition to a low carbon economy. Norway’s oil fund is worth over £200 billion – despite the first instalment being made as recently as the mid 1990s – and Alaska’s oil fund even gives money back to its citizens every year.”

from Global Investing:

Dead cat bounce?

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New year can get in the way of understanding what is happening on financial markets. Just because humans measure the year in 12 month tranches, it does not necessarily follow that markets do. Consider world stocks, for example. MSCI's all-country world stock index is often cited as having fallen 43.5 percent in 2008. In fact, long-term investors' losses were a lot worse. From an all-time high on November 1, 2007, to a low on November 28, 2008, the index fell 56.2 percent.

Something similar is happening at the moment. Investors might be focusing on year-to-date losses of around 5.7 percent for the index, but they are doing better than that. The index has gained 14.5 percent from that November 28 low last year.

Are you postponing your retirement?

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Most Americans felt investment pain in 2008 as the value of retirement accounts and other assets dropped along with the economy. But older Americans are feeling particularly hard-hit by the financial crisis and many now say they must now postpone their retirement, according to a survey by the AARP, which represents older Americans. The survey, released on Friday, showed 57 percent of those who were employed or looking for work and who lost money in their investments over the past year expected to delay retirement and work longer. It also found 36 percent of workers had stopped putting money into their retirement accounts in the past 12 months.

Have you decided to postpone retirement because of investment losses? How much longer will you have to work to afford retirement? Is the concept of retirement a thing of the past?

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