The majority of global pension funds have been increasing their equity allocation in the past six months. However, many would prefer to decrease it if they could just find yield somewhere else, because they expect a serious market correction.
With the United States’ equities bull-run into its sixth year and valuations looking pretty much up to the brim, investor sentiment has steadily shifted more in favour of European stocks – but should investors really make big cuts to their US allocation?
Barry Norris, the European equity manager and co-founder of London-based investment boutique Argonaut, is one of the most outspoken proponents of a Grexit. The refusal of the current ‘communist’ Greek government to commit to reforms means the country’s economy could never be able to stand on its own feet if it stays in the eurozone, Norris believes.
The past few weeks have been somewhat of a roller-coaster ride for investors.
While virtually all American investors have an allocation to standard index-trackers, only one in five are invested in smart beta funds. In Europe, this percentage is twice as high, and among large institutional investors with more than $10bn in assets under management, more than two thirds use smart beta products. These large institutional managers use […]
James Rubin served under President Clinton as Assistant Secretary of State from 1997 to 2000. At that time, as he reminded the audience, the world was a much simpler place for a diplomat like him than it is now. In his keynote speech at EIE’s Pan-European Congress in Rome, he talked us through the three […]
While this decompression will have been welcomed by investors looking to buy into the market, it was the opposite for those at the long end of the curve, with10-year bond holders losing around 5% of their capital. Though the price shift made the headlines, rather than coming as a great surprise it has merely served […]
While government bond yields and, in particular, gilt, bund and treasury yields have all been rising in recent weeks (German 10 year yields doubled last week) the last few days have seen sudden, sharp moves that have seen investors lose significant amounts of capital. As one investor put it to Portfolio Adviser on Thursday, if […]
Financial consultancy Wellershoff & Partners recently analysed the return prospects for equity markets in Asia, Europe and the US, The outcome? Europe will outperform the US by about five times.
US equity and global equity funds were 2014’s best-sellers globally, according to Morningstar’s Global Flows Report 2014. Total global net inflows into US equity large cap blend funds topped the list.