Global Investing

Too much correlation

June 10, 2010

Globalisation is evident in this graphic put together by James Bristow, a global equities portfolio manager at BlackRock. It shows the correlation between the U.S. S&P stock index and counterparts in Europe, Australasia and the Far East.

Another fine excuse for selling stocks

April 28, 2010

There is no question that the losses on stock markets at the moment are primarily the result of the Greek crisis. A downgrade of a euro zone country’s sovereign debt to junk is enough to make all but insane mainstream investors take a large step away from risk.

How do rich people get rich?

April 12, 2010

An upcoming book by Kaye Thomas explains in plain English the secret of succesful investing:  Turning money into more money.

Eight days could point to a correction

April 12, 2010

Morgan Stanley has been crunching some numbers about Europe and come up with something that (not surprisingly) fits their scenario of  a near-term stock correction but only within a longer-term cyclical bull market for equities. It all comes down to eight days in March, apparently.

Revisiting March lows

March 9, 2010

No, not in the way you think. Tuesday marked the one-year anniversary of world stocks hitting what appears to be their post-financial crisis low. The index was the MSCI all-country world index. The low was hit on March 9, 2009.

Do southern Europeans know something?

March 8, 2010

Slightly strange data from Deutsche Börse. Its latest survey of what top European executives have been doing shows increasing signs of optimism.  That is, management board and supervisory board members and their families have been buying shares in their own companies.

The art of being passive

February 26, 2010

Hundreds or even thousands of  ”active” fund managers are competing to add alpha to beat benchmark indexes, be it in stocks, bonds or alternatives.

from MacroScope:

Greek Contagion: One Hell of a Tail Risk

February 14, 2010

The crisis of confidence in Greece's fiscal health has dented U.S. equities, though not enough to compromise a budding American economic recovery. Even a significant slowdown in European growth prospects might have limited immediate impact on the United States. However, that benign backdrop could vanish, economists at Morgan Stanley say, if the Greek situation were to turn in to an outright credit crisis.  They call it the "contagion tail risk":

No one flying to safety yet

January 28, 2010

Reuters asset allocation polls for January are out and — perhaps not surprisingly — show global investors cutting back a bit on stocks. That would be expected given that world stocks are heading for a negative month and the likes of emerging markets have had a few days battering.

It’s the exit, stupid

January 26, 2010

Ghoul

Anyone wondering what ghoul is most haunting investors at the moment could see it clearly on Tuesday — it is the exit strategy from the past few years’ central bank liquidity-fest.