Several decades, market capitalisation-weighted indexes like the MSCI ACWI (All Country World Index for global investing) and the S&P 500 Index (for U.S. large-cap investing) have served as the foundation of a passive approach to investing, with many investors viewing them as an efficient way to gain broad exposure to a wide variety of equity markets. Yet today, more … [Read more...] about Smart Beta: Index Investing, Evolved
As the title suggests, readers may not be overly familiar with the term Inverse Volatility ETF. However, in early February this year the term entered the mainstream with a bang! The market correction in the first few days of February led to the demise of one of the largest of such products the VelocityShares Daily Inverse VIX Short-Term exchange-traded note (VIX) with losses … [Read more...] about VIX?, XIV? …. and the wipe out of investors capital
In this article we discuss whether Europe’s economic momentum can continue and how will tighter monetary policy affect markets. Supportive Economic Backdrop Economic growth has improved and forward looking indicators remain positive. The economic expansion we’re seeing in Europe can continue. The key reason why, is that corporate management teams are now incentivised to … [Read more...] about Where to next for markets? As Europe moves from recovery to expansion.
Traditional fixed income markets face a number of challenges over the coming year. we highlight five reasons to be fearful for the bond market. Four of these relate to worries about the potential returns from the highest quality bonds in the developed world, The final one is the fact a competitor asset class appears to be offering superior returns – again. Inflation and … [Read more...] about Five reasons to be fearful for the bond market
Cryptocurrencies have dominated the financial headlines in the last few months, initially with jaw dropping gains followed more recently by rollercoaster trading. Jamie Dimon, CEO of JP Morgan and Warren Buffet have both cast their doubts about the longer term sustainability of Bitcoin, Ripple and others. In truth, cryptocurrencies have a long way to go before being considered … [Read more...] about FANG OR FAAAS: Driving Equity Markets to New Highs