Focus

Japanese dividends accelerated in late 2013 and the subsequent 30% growth must have contributed to the 40% gain in share prices Among popular asset categories, Japanese equities have shone over recent months. In fact, Japanese stocks are up around 10% in yen (luckily we were Overweight). Given the low returns… Read More »

Advances are being made in fields such as information technology, robotics, energy and health care that will dramatically increase productivity growth, global welfare and living standards, but some economies will cope better with these changes than others   Heatmap: Potential Winners and Losers From the Third Industrial Revolution (0 =… Read More »

The Spanish local elections should give the market a better feel of how the ‘insurgent parties’ are faring Next Week’s PreviewEuro areaThe situation in Greece is likely to remain a focal point, with considerable uncertainty on whether a deal is likely to materialise in time for the government to pay… Read More »

Policy divergence may warrant hedging euro uncertainty   A resilient US economy, underscored by a hawkish sounding Fed amidst a tightening labour market is preparing investors for a very likely first rate hike since 2004. By lagging several years behind the US recovery, the QE-induced low interest rate environment should… Read More »

The financial advisory industry is at a generational crossroads. According to a 2012 study, 44% of advisors are over age 55 – and so are many of their clients The financial advisory industry is at a generational crossroads. According to a 2012 study, 44% of advisors are over age 55… Read More »

Income-oriented portfolios are attractive options for many retired investors. From a psychological standpoint, these portfolios may seem appealing. Income-oriented portfolios offer a simple way to plan, and seem to avoid violating the widely-held belief to never invade principal. Unfortunately, today’s low interest rate environment has made it hard for investors… Read More »

JP Morgan’s CEO Jamie Dimon is delighted: the company that he heads has reported record earnings of $22bn for 2014 This figure is all the more spectacular in that the bank was obliged to pay various fines totalling $25bn over 2013 and 2014. Goldman Sachs is on a similar path… Read More »

Global Research reveals investors are struggling to reconcile objectives with the pressures of the market State Street Global Advisors (SSGA) released global research today that highlights significant contradictions in investor behavior.The pressure to perform is resulting in distinct investor contradictions in three key areas: asset allocation, market expectations, and downside… Read More »

In a seemingly commoditised world, the potential pitfalls that are still to be found trading emerging market local debt may come as a surprise. Rules, taxes, regulations and market convention vary wildly from country to country Many of the difficulties posed when trading and accessing local markets stem from capital… Read More »

The simplest way to check the stability (or lack of thereof) of market expectations, is to break down bond yields into two components: the ‘risk free rate’ and the term premium Since mid-April, financial markets have gone through a significant re-pricing of key assets such as German Bunds but also… Read More »