LONDON, Aug 13 (Reuters) – Investors have boosted their
allocation to euro zone stocks to its highest in 5-1/2 years at
the expense of emerging markets as confidence about the region’s
growth improves, a closely-watched survey showed on Tuesday.
The monthly fund managers poll from Bank of America Merrill
Lynch showed a net 17 percent of investors are overweight the
euro zone, the highest level since January 2008.
LONDON, Aug 9 (Reuters) – The world’s biggest state-backed
funds are joining the “Great Rotation” portfolio switch out of
bonds into equities, a move that risks crowding the trade and
lessening the allure.
The shift into higher-return equities out of low-yielding
bonds is one of the top investment themes of 2013, driven mainly
by U.S. private pension funds and retail investors.
EM is starting to be a trouble for SWFs… who joined this EM diversification bandwagon. If you were in public EM mkts, you are in trouble
But for the post-1980 sample, the annual probability of default more than doubles to 4% (Tomz and Wright)
We know now sovereigns default all the time. According to Tomz and Wright, there’s 1/50 chance a given country is in default at any time
Deutsche Bank on the impact of China relaxing one-child policy: none in the coming 16yrs but will boost annual GDP growth by 0.2ppts 2030-50
LONDON (Reuters) – The winning investment strategy of 2013 has been simple but extreme: return home to the safety of the biggest, most-traded markets, or venture to the riskiest frontiers from Ivory Coast to Pakistan.
Those in the middle of the risk curve – the biggest emerging markets that now account for almost half of the top 20 world economies – have been the big losers.