The fact that from a yield perspective there is no serious alternative to replace the equity markets does not mean that it is right to put all our eggs in the equities' basket. This and more was said by President and CEO Equities Joe Amato and Erik Knutzen, Chief Investment Officer Multi-Asset Class at investment firm Neuberger Berman, at the firm's annual European conference. Virgilio Chelli has compiled a good summary of their speeches on "Financialounge.com".
Equities, of course - but not only
Amato and Knutzen's remarks were accompanied by the traditional survey of the best investment performance forecasts for the year. Equities continue to lead the way, but have fallen from 75 per cent last year to 51 per cent now. Commodities, on the other hand, have risen sharply to 43%. This is followed by cash (5%) and bonds (1%). Stocks should therefore remain the preferred investment, but not the only one. On the one hand, they can be supported by companies with solid ...
For some time now, it seems that gold has not been experiencing great fortune among financial investors. But how do things really stand? And what are the reasons for the price stagnation in recent months?
The stagnation of the gold price
After its summer peak in 2020, when an ounce of gold was worth more than $2,000, the precious metal began a slow descent. Today it is worth just under $1,800 an ounce. There have been times when gold has run again, exceeding $1,900, and times when it has fallen below $1,700. Now, the decline in the gold price after the summer of 2020 can be justified by a bull stock market. But how to justify the current price stagnation, when in the financial news there is mostly talk of a bear market and inflation, i.e. conditions that typically drive up the prices of precious materials?
Why is gold not rising again?
One of the reasons why gold has underperformed in recent weeks is the strength of the US dollar. Expansionary policies have given a strong boost to ...
The success of alternative investments is growing. How well-prepared are investors and managers for the challenges they face in terms of risk? Head of Fund Companies at Credit Suisse Asset Servicing Patrik Marti wrote about this in finews.com.
The success of alternative investments and the challenge of risk management
Low interest rates have turned investors towards alternative sources of return. Among these sources are, of course, alternative investments, which include: a) the real estate market, b) infrastructure investments, c) private equity. Let's stay with private equity for a moment. Marti shows a graph showing the surprising trend in the volume of investments in this sector, which has risen from $2 trillion in 2002 to $8 trillion today.
The growth of alternative investments presents a major challenge, however, and that is risk management. As Mati explains, manual or standard risk management may be insufficient for an industry characterised by low liquidity and a long-ter ...
After a very strong 2021, the crypto market has fallen dramatically in the first month of 2022. Bitcoin is now trading just above the $35k mark, down close to 50% from its all-time price of $68k reached as recently as November 2021.
In many discussions with investors, we tend to find people want to find the ‘right’ megatrend. Far less often we find investors seeking to discuss areas where megatrends overlap, meaning examples or cases where the combined impact of two distinct megatrends could potentially lead to significant results—results that would likely be impossible without the overlaps of these technologies. Usually, people prefer that clear demarcation between megatrends.
While it is easy to find the big prognostications about megatrends—Artificial Intelligence (AI) being one—many of them tell us where we might be 10, 20, or 30 years into the future. We think it’s helpful to, instead of focusing on where we could find ourselves by 2050, to think about what we might see in 2022.
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