MoneyController

MoneyController

MoneyController - Find the financial advisor that's right for you is a finance and digital business european platform designed for financial advice and asset management. It’s a complete and robust online directory for the finance world that allows investors to search for and network with financial advisors. With the help of our powerful search engine, you can view their services and offers. Interact with financial advisors directly, even from your mobile devices. The platform also provides news coverage and tools for analysing and controlling the financial risk of your own portfolio.

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Deflation and a negative outlook: China's growth weaknesses

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  • Financial markets/economy
Posted on 11.12.2023

China's growth is now facing some economic and financial difficulties, as evidenced by the fall in demand, which has led to higher than expected deflation. Deflation in China While central banks in Europe and the US are busy fighting inflation, China's economic data is showing even more deflation than expected: deflation of -0.5% was recorded in November. Food, manufacturing and energy prices were the main contributors. Chinese consumers and deflation The downward trend in prices can be explained by the slowdown in growth, but there is a risk of a circular effect: in the hope that prices will continue to fall, Chinese consumers - as Rai News points out - could postpone purchases and consumption, which would reduce demand and complicate production and inventory management. Moody's: credit outlook downgraded from stable to negative Meanwhile, Moody's has downgraded the credit outlook from stable to negative. This is mainly due to the fact that China is about to emba ...

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The time for multi-asset portfolios is back

Posted on 07.12.2023

After a difficult period, multi-asset portfolios now appear to be in a favourable position. A portfolio manager writes about this in the magazine Das Investment. The multi-asset strategy and the mixed portfolio of stocks and bonds Multi-asset portfolios are the result of an investment diversification strategy that typically combines an equity and a bond component within a portfolio. As GAP portfolio manager Georgios Passameras explains, equities are the most yield-oriented investment in the long term, but also the riskiest due to market fluctuations. Bonds, on the other hand, are the most defensive investment: they are not risk-free (e.g. capital loss and credit risk), but they provide portfolios with a fixed income and a guarantee of repayment at maturity. Low interest rates and the defensive role of bonds ineffective Passameras points out that the multi-asset portfolio has had to face some difficult periods. During the long period of low interest rates, investors have to some ext ...

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ETFs: Market trends in Europe

Posted on 07.12.2023

In the third quarter of this year, ETF inflows in Europe showed some trends worth looking at. Maturity ETFs and actively managed ETFs What trends are driving the European ETF market? Morninstar has identified some of these trends and reports on them in an article by Sara Silano. Among the new developments tracked by Morningstar is the arrival of maturity bond ETFs in Europe, first distributed by iShares and then by DWS. Also entering the European market is Ark Invest, Cathie Wood's company, which has acquired Rize and will offer actively managed ETFs to investors. Moving from banking to energy Another interesting aspect noted by Morningstar is the increase in inflows into equity ETFs (€ 19 billion in Q3), despite their negative performance against a benchmark equity index such as the Morningstar Global TME. Morningstar also notes a new thematic trend that is gradually leading investors to move out of banking stocks and into larger holdings of energy-related funds. Concern ...

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Equities and money market funds at highs, only an apparent contradiction

  • 40
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  • Financial markets/economy
Posted on 06.12.2023

With equity markets and money market funds at historic highs, why are investors betting on such different markets? An apparent contradiction Vittoria Puledda writes in 'Affari&Finanza' ('La Repubblica') that the growth of stock markets and that of money market funds, both of which have reached record levels, are only apparently contradictory phenomena. The contradiction stems from the fact that these are two very different markets, especially in terms of risk/return: investments in equities offer higher average returns but are riskier; money market funds are safer but offer lower returns. The strategy of investment diversification What attracts investors to these two different markets is the growth of the stock market on the one hand and the increasing returns of money market funds on the other. From this point of view, Puledda explains that investors' behaviour is less contradictory: they are taking advantage of both the trend growth recorded by the markets ...

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How to invest if recession becomes probable again?

Posted on 06.12.2023

Not all asset managers believe that the risk of recession has disappeared: what is the situation in their portfolios? The risk of recession has not disappeared In 2024, the risk of a recession in the US and Europe remains real. As we read in "Focus Risparmio", Vontobel's Head of Hybrid Portfolio Management, Gianluca Ungari, outlines the possible scenario of an economy in a mild recession, not least because the economic consequences of restrictive monetary policies are usually not felt immediately. One factor that will play an important role in pushing economies into a mild recession is the restrictive monetary policies of central banks. At the same time, Ungari expects inflation to fall to the monetary policy target of 2% by the end of 2024. Recession will be mild Limiting the recessionary impact of rate hikes (Ungari speaks of a "soft phenomenon", i.e. an economic impact of monetary policy that is not too traumatic) will be the contribution of consumers, es ...

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The risk and return advantages of intermediate-grade bonds

Posted on 04.12.2023

A manager of an asset management company talks about his investment strategy, which looks with interest at the intermediate bond segment (rated between B and triple B). High yield bonds The bullish interest rate cycle has led the bond segment to achieve coupon yields that we have not seen for a long time. According to an article on "Investrends.ch", Laurent Gorgemans, Global Head of Investment Management at Nordea Asset Management, points out that in Europe, for example, the high-yield bond segment has achieved yields of between 7 and 8%. Default risk and economic fundamentals However, Gorgemans stresses that while high-yield yields almost always come with a higher credit risk than other bond types, this makes them even riskier today given the current economic uncertainty. Nordea's Global Head of Investment Management therefore believes that the issue of issuer credit fundamentals is becoming increasingly important, although he does not expect a wave of defaults as co ...

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Gold and bitcoin prices point higher

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  • Financial markets/economy
Posted on 04.12.2023

Gold and bitcoin prices are on the rise, but what is the outlook for these two asset classes in 2024? Gold tops $2,000 an ounce The price of gold has been crossing the psychological threshold of $2,000 an ounce for several days now. Yesterday (3 December) the yellow metal even broke through the $2,100 mark. In an article on "CNBC", Lee Ying Shan reports on a note from BMI, the research unit of Fitch Solution: There are three reasons that could support gold buyers in 2024: the cut in interest rates, the weakening of the dollar and the persistence of geopolitical risks. Interest rates and savings products (alternative to safe havens) This is despite the fact that Jerome Powell, Chairman of the Federal Reserve, has reiterated that there will be no sharp fall in interest rates in 2024. The price of gold is linked to interest rates, as a rise in the cost of money strengthens the reference currency (the dollar) and - Shan adds - increases the yield on alternative savings produc ...

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Markets are running, but managers are not keeping pace (except for bonds)

Posted on 01.12.2023

A study shows that active management cannot keep up with market returns, which favours index funds (such as ETFs). The exception is the bond segment. A very positive November for equity markets November was one of the best months for financial markets in 2023: Nasdaq +10%, Dow Jones +8.8% and S&P 500 +8%. In Europe, the DAX was also up by around 9%, while the Italian FTSI Mib index was up by 7.6%. Equity markets have rallied strongly and it is clear that many investors are benefiting. However, active management is in danger of underperforming index funds, according to a study by the German "Instituts für Vermögensaufbau" (IVA) and reported in "FONDS Professionell". Active management underperforms indices The IVA study was carried out for asset manager Vanguard and looked at the activities of active portfolio managers in the private banking units of banks and asset managers. The study looks at the performance of active management over the last 15 ye ...

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Signa Holding declares insolvency: risk of a chain reaction?

Posted on 01.12.2023

Property giant Signa Holding has filed for insolvency: how did this happen and what are the possible consequences? Signa Holding has filed for insolvency Signa Holding, the real estate company founded by the Austrian René Benko, has filed for insolvency with the Vienna District Court. As Walter Galbiati points out in the 'Repubblica', the group had already declared a significant loss of liquidity, which had fallen from €122 million to €32 million in six months (December 2022 - June 2023). Shortly afterwards, the ECB also warned Signa's creditors, asking them to write down their loans to the group. Liabilities and maturities Faced with a situation that was now out of control, Benko resigned as group president at the beginning of November. Today, according to J.P. Morgan, the group has debts of €13 billion and around 120 creditor banks. The most pressing issue, however, is the €1.3 billion of debt that comes due this year. The new management is ...

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Palladium prices plunge, platinum prices fall, gold and silver prices rise

Posted on 30.11.2023

During 2024, gold and silver prices rose, while platinum and palladium prices fell: what is the reason? Gold price on the rise Among commodities, gold has experienced price volatility in 2023, but this has been driven by an upward trend that has seen the yellow metal reach a price of over $2,000 an ounce in recent days. Behind gold's rise, some analysts see the prospect of monetary easing by central banks, particularly the Fed: the dollar's pressure on gold, as the greenback is the commodity's reference currency, could therefore ease during 2024. Silver, platinum and palladium Silver has also risen since the beginning of the year, from $22.7 to $24.9 an ounce. On the other hand, two other metals which, like silver, are used for industrial purposes, namely platinum and palladium, have seen significant falls since the start of the year: platinum has fallen from $1,000 an ounce to $931 at present, while palladium has fallen dramatically from $1,853 at the start of the year ...

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Is it worth investing in Italian government bonds?

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  • Gov. bonds and Spread
Posted on 30.11.2023

What are the investment prospects for Italian government bonds? La Stampa (in an article by Sandra Riccio) interviewed John Taylor, co-manager of AllianceBernstein's AB European Income fund. For the manager, on the one hand the country can count on an economy that has resisted better than some European champions, on the other hand the country suffers from the public debt situation. Moody's rating affirmed and outlook upgraded Moody's confirmed Italy's Baa3 rating (the lower investment grade level), but changed the outlook from negative to stable. As Taylor explains to Riccio, this news led to a narrowing of the spread between Italian and German government bonds. For Taylor, this narrowing has made the investment case for Italian government bonds more attractive. The burden of government debt and the risk to the credit market However, from the point of view of those looking to invest in the Italian credit market and Italian government bonds, Taylor believes that inve ...

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Investment: Investors remain cautious on the Chinese market

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  • Financial markets/economy
Posted on 29.11.2023

How much are the economic slowdown and diplomatic tensions with the US affecting investment in China? So far, geopolitics has played less of a role than one might think, but the unknowns of economic development and international relations are central to the outlook of several analysts. The weight of geopolitics has been reduced so far In the investment environment, geopolitics may sometimes count for less than one might think. Alex Wolf, chief investment strategist for Asia at J.P. Morgan, points this out. Looking at the last four years or so (from Q1 2020 to the present), diplomatic relations between the US and China - which are undoubtedly geopolitically significant - have deteriorated. However, the amount of global investment flowing into China was USD 130 billion, compared with only USD 10 billion of outflows. Onshore and offshore equities The situation changes when we look at shares issued and settled in China (onshore) and those issued and settled abroad (offshore): the latte ...

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