Japan – This time is different, or is it? 18/11/2014 Investors seldom feel like talking about Japan. A geographic outlier relative to other global developed markets, the world’s third largest economy has many times emitted false recovery signals. It is hard to fathom that not too long ago, keiretsus, Japanese conglomerates, were dominant global players. Japan’s weighting in the MSCI World Index in 1987 was roughly 40 percent, twice that of Europe and 10 percent higher that of the US. Today its weighting in the popular market capitalisation equity index is around 8 percent. After 20 years of stagnation we believe that the current combination of policy and reform – Abenomics - may just be creating the right conditions for the economy to reinvent itself and become a lot more relevant on a global scale.
Global economic outlook 05/11/2014 Graham Wainer, global head of investments and chair of the investment advisory board, GAM gives his opinions on the global economic picture.
Swiss private banking sector to grow client assets and revenues by 2.8 percent per year, says new report 31/10/2014 The Swiss private banking sector is forecast to grow client assets under management by 2.8 percent a year to 2018, according to a report produced by the Swiss Bankers Association (SBA) and the Boston Consulting Group (BCG) called Actively Shaping Transition - Future Prospects For Banking in Switzerland. As a consequence total client assets under management will amount to CHF 3,540 billion with annual revenues projected to come in at around CHF 30.3 billion.
Are US inflation pressures building? 30/10/2014 There are good reasons to be concerned about deflation risks in the global economy. The Eurozone and Japan have significant output gaps (the gap between the potential growth rate of an economy and the actual growth rate) and chronically high unemployment rates, which are suppressing demand. Meanwhile, weak commodity prices, including both oil and food, and the strength of the US dollar (and sterling) are keeping price pressures low. These disinflationary forces are impacting real economic activity and reducing confidence. Inflation globally has remained absent throughout 2014, and that may well persist in the near term. However, looking at the US in isolation, in our view there is evidence of inflationary pressures emerging that suggest over the medium term that the direction of travel for US inflation is higher, not lower, from current levels.
Dividend strategies help benefit from Asia's growth, says CIO 28/10/2014 Emerging markets fall in and out of favour with investors on a cyclical basis throughout the year, but many experts believe that Asia in particular will sustain long-term growth. Robert Horrocks, chief investment officer of Matthews Asia and portfolio manager of the Asian Growth and Income and Asia Dividend strategies spoke to thewealthnet about his long-term outlook for the Asian region.
Market correction, not collapse, says BNY Mellon 23/10/2014 The return of volatility to equity markets raises the question of whether the turbulence is merely an expected side effect of the shift in monetary policy as the Federal Reserve ends quantitative easing, or a signal of more serious trouble to come.
According to BNY Mellon this is a period of correction rather than a collapse.
Market collapse or correction: It's that old but not that familiar October feeling 17/10/2014 October and stock market collapses go together. The Wall Street Crash of 1929 occurred in October when on 28 October (Black Monday) and 29 October (Black Tuesday) the Dow Jones Industrial Average lost 12 percent and 13 percent respectively. On 19 October 1987 (another “Black Monday”) the Dow plunged by 20 percent, an event replicated by major market indices around the world. More recently in 2008 the Dow fell by around 14 percent.