The Great Debate UK

from Reuters Investigates:

Escape from Wall Street

Leah Schnurr and Edward Krudy report today on retail investors fleeing the stock market. Will the Lost Decade create a Lost Generation of investors who avoid the market in a way not seen since the Great Depression?

Here's what one of the authors had to say about the story:

By Edward Krudy

The perception that the stock market is a place where the average person can share in the wealth of the nation has been a cornerstone of American society throughout the twentieth century. That's why we felt it was a big deal when small investors started to abandon the market.

After two big declines in stocks prices - one during the dot-com bubble at the turn of the millennium and another barely a decade later - we felt we needed to ask if this time it was more than just the post-crash doldrums keeping investors away. This time, would they be coming back?

The report touched on the lives of individual investors around the country. It took us to Princeton's leafy campus, into conversations with scores of analysts, professional investors, and brokerages, and even into the archives of the Museum of American Finance beneath the floors of Wall Street's banks.

from Funds Hub:

Unstable, greedy, selfish….

Not the words ringing in my ears as I leave for work every morning, but City of London Investment CEO Barry Olliff's take on the UK financial sector.

Olliff is taking his company from AIM and onto the main market next month and the new governance guidelines which will apply to the firm as a result have sparked a frank assessment. Take it away, Barry:

from Funds Hub:

Where there’s muck…

Pensions schemes are in trouble, but those attempting to get them out the mire are seeing some money-spinning opportunities.

Corporate retirement funds that have promised to pay workers based on their final salaries have long been heading for difficulties as we humble drones have the temerity to live longer than anyone thought possible. Combine that with roller-coaster markets and unpredictable inflation and interest rate prospects and trustees start hunting around for a golden bullet.

from The Great Debate:

While the music plays funds gotta dance

cr_lrg_108_jamessaft1.jpg(James Saft is a Reuters columnist. The opinions expressed are his own)

With just a few short weeks until the end of the year, look for many fund managers to take on more risk in an effort to salvage their annual return figures.

This is not about fundamentals, this is about something far more important: career risk.

from Global Investing:

I blame the fund managers

I've been building up a couple of dummy funds on Reuters' new Portfolio tool. Not only is it a welcome diversion from actual work, but it allows me to test the mettle of the fund managers we speak to, and check out the guidance offered by the Lipper Leader fund rankings.

One of my portfolios uses the stock picks and short ideas offered up by the managers we interview for the many FUND VIEW stories which dot the Reuters wire. The other simply picks some of the funds which score highest across the Lipper fund sectors.

The stockmarkets: irrational nonchalance


Laurence Copeland- Laurence Copeland is a professor of finance at Cardiff University Business School and a co-author of “Verdict on the Crash” published by the Institute of Economic Affairs. The opinions expressed are his own. -

Before the credit crunch, we had what I called a Prozac market. Investors on both sides of the Atlantic seemed to be in denial, as irrational as the people who end up in the bankruptcy court because for years they have kept on smiling while the bills piled up unopened.

Black box trading drives descent of Man


REUTERS– Margaret Doyle is a Reuters columnist. The opinions expressed are her own –

Apparently, investors in Man Group’s flagship fund value liquidity and safety above performance. At least Peter Clarke, the company’s chief executive, hopes so.