Tech Still all the Rage While Bears Prowl Emerging Markets: BAML Survey

imageGlobal investors remain overwhelmingly bullish on US and Chinese tech shares, while short positions on emerging equities are growing increasingly popular, Bank of America Merrill Lynch’s latest monthly institutional investor survey showed on Tuesday. Learn more

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Dodgeball

There are a number of different ways that investors can lose money. Some are risks that are inherent in investing such as having to convert a paper loss into an actual loss because you have to liquidate a holding which is underwater which would likely recover if given time. There are many other ways to lose client money which are permanent. These are often a result of careless strategy selection rather than market characteristics.

James Klempster (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers shares their view. Click here to learn more.

Taking the Temperature of the Global Economy

Currently the difference between two and ten-year US Treasury bond yields is at its lowest level since 2007, raising fears of an imminent recession. Our base case scenario remains one in which we continue to see a slow, synchronised global expansion. As such we see better value at the front end of the US yield curve and some evidence of mispricing further out, rather than a canary in the coal mine. Nonetheless it is worth spending a minute taking the temperature of the global economy.

Richard Stutley (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers shares their view. Click here to learn more.

The Best And Worst Performing Assets In June, Q2 And YTD

As we reach the mid-point for the year, leaving behind a half most would rather forget and looking forward to a half in which central bank quantitive tightening is about to really pick up, Deutsche Bank’s Jim Reid writes that markets spent most of the month of June flip-flopping between constantly evolving trade-war related headlines, as well as digesting the diverging path of a more hawkish than expected Fed versus a more dovish than expected ECB following their respective policy meetings. Learn more

China, Russia Pare US Treasuries Holdings as Trade Tensions Rise. A Sign of Things to Come?

rtx1gzco.jpgPresident Donald Trump threatened to escalate the trade fight with China into an all-out trade war on Monday, promising to impose massive tariffs on Chinese goods unless Beijing reverses course on its own trade actions.

Meanwhile, foreign governments have pulled back their purchases of longer-term US debt as trade tensions escalate, with Russia dumping half of its holdings. Could this be a sign of things to come? Learn more

China Awakens

unnamed-3.jpgIf you checked the MSCI Emerging Market Index last Friday, you would have noticed the inclusion of 226 new A-Shares of Chinese companies into the benchmark. This is the first step of a very gradual introduction which will continue in September and A-shares only represent 0.4% of the index at present.

While it might seem insignificant, it has triggered a wave of forced buying by passive strategies and could ultimately have a large impact on the composition of the index and investors’ investment universe. In fact, if all those stocks were fully included along with additional mid cap names over time, China could come to represent 50% of the Emerging Markets of which 28% from A-Shares!

What does this mean for your portfolio? Click here to learn more.