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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Investing in US equities and European bonds

Posted on 23.05.2024

Multi-asset investments involve spreading assets over more than one asset class, but usually do not neglect the selection of securities for each. An example of a portfolio. An example of a multi-asset portfolio A multi-asset investment portfolio involves an asset allocation that is at least diversified between stocks and bonds. However, security selection is usually not limited to the allocation of assets between stocks and bonds, but also goes as far as selecting the securities to be included within the same asset class. In this regard, FONDS Professionell magazine considers the example of a portfolio of the asset manager Pimco, whose managers are Erin Browne and Emmanuel Sharef. Slightly overweighted equities and cyclical stocks As far as the equity component is concerned, the two managers (who in their asset al location slightly overweight their investments in equities) look with interest mainly at high-quality US large caps and also at some similar companies in emerging markets ...

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Nvidia's revenues fly thanks to data centre and cloud boom

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  • Financial strategy and management
Posted on 23.05.2024

Nvidia is once again surprising with its revenues above expectations. Driving the business of the company founded by Jensen Huang seems to be above all the use of chips in data centres and by cloud service providers. Revenues Above Expectations Nvidia is continuing its run in the markets, after its first quarter figures for this year came in even above expectations: revenues of USD 26 billion, a 262% increase over the same period last year. Expectations for second quarter revenues are around USD 28 billion. Since the beginning of this year, the stock on the stock exchange has almost doubled in value: from just under USD 440 to the current USD 876. The data centre business As Kif Leswing (CNBC) points out, it is the data centre business, which grew by 427 per cent last quarter due to increasing demand, that has driven the results of the Californian microprocessor company. After all, Nvidia has among its customers no less than companies such as Amazon, Google, Microsoft and Oracle. I ...

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The king dollar and the currencies most affected by its appreciation

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  • Financial markets/economy
Posted on 22.05.2024

The dollar is as strong against other currencies as we have seen in a long time: but what are the consequences of this strength? Dollar Index just under 105 points The US dollar today is between 104 and 105 points, and it maintains a dominant position not only in terms of transactions, but also in terms of value over many other currencies. In particular, it can be noted that after years in which the Dollar Index had been below 100 (ten years ago, for example, it was at 80), today that value has been above 100 points for more than two years. But what are the consequences of this strong dollar for the markets and the global economy? The devaluations of other currencies against the dollar As Marco Valsania points out in ‘Il Sole 24 Ore’, more than 60% of the world's 150 major currencies have lost ground against the greenback: ranging from the borderline cases of the Zimbabwean dollar and the Lebanese pound (-81% and -83%) to the currencies of South Sudan, Egypt and Nig ...

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Utilities stocks are driven by artificial intelligence

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  • Financial markets/economy
Posted on 22.05.2024

In the financial markets, the electricity-related utilities sector is usually included among ‘value’ investments. However, if one looks at the trajectory of recent months, it is surprising to see some performance comparable to that of certain growth stocks. Utilities benefit from artificial intelligence The reason that has propelled electricity-related utility stocks in the stock market seems clear: among the economic activities affected by the development of artificial intelligence are also utilities. The reason lies in the fact that artificial intelligence programmes and systems require the use of electricity. As we read in the Wall Street Journal in an article by Jason Zweig, Bespoke Investment Group found, for example, that in the past three months, three out of the five best performing stocks listed on the S&P 500 are utilities. The underperformance of utilities in recent years Until recently, the trajectory of the utilities underperformed the benchmark indices ...

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Bond investors seem to be ignoring some risks

Posted on 21.05.2024

There is growing demand for bonds on the markets, which causes prices to rise and yields to fall. This dynamic, however, may be accompanied by a certain underestimation of risks by investors. Spread between corporate bonds and risk-free bonds falls The spread between corporate bonds and so-called risk-free (i.e. low-risk) government bonds has narrowed recently. The reason is that demand is driving up prices and lowering yields, which are therefore closer to those of government bonds of very solid countries such as Germany or the US (such as US treasuries). On ‘Affari&Finanza’ (‘La Repubblica’), Vittoria Puledda points out that this phenomenon can be seen in two different ways, one more optimistic, the other more pessimistic. Strengths and weaknesses of the bond market today On the one hand, the prospect of an interest rate cut makes it attractive to subscribe to bonds today that distribute high coupons on average: in a context of an interest rate cut, ne ...

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Investing in value stocks, a look at valuations and dividends

Posted on 21.05.2024

What are the prospects on the markets today for a value investor? Value securities and prices closer to fair value ‘Value’ and ‘growth’ are two types of securities, as well as two types of investment strategies (‘value investing’). Value' securities are defined as such on the basis of their market valuation and their business characteristics: on the one hand, the share price is on average closer to fair value (often even lower) than is the case for growth shares; on the other hand, companies issuing value securities typically have strong balance sheets and businesses. The great champion of value investors (of value investing) has so far been Warren Buffett. The ‘value’ investor between average risk profile and patience During the ‘Market Mover’ programme (Il Sole 24 Ore), Lucilla Incorvati explains that today's value stocks have relatively low market valuations (all the more so if ...

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Perpetual bonds: what are they, how do they work?

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  • Financial products
Posted on 20.05.2024

There is, at least in theory, a rather special type of bond, as it has no maturity date and distributes coupons virtually forever: these are perpetual bonds. But what are they and how do they work? What are perpetual bonds? Perpetual bonds are bonds that do not have a maturity date. This means that, on the one hand, they distribute coupons virtually forever and, on the other hand, put the issuer in the position of never having to repay the borrowed money again.   Niche financial instruments As James Chen writes on the ‘Investopedia’ portal, these products in some ways resemble a stock that regularly pays dividends rather than a bond. In any case, Chen continues, these financial products may only occupy a very small niche in the market: there are few issuers judged to be so solid as to be able to pay interest on a debt security virtually indefinitely. There are no perpetual bonds in circulation on the markets today It may seem contradictory, but as we read on ...

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Equity mutual funds lose the challenge to S&P 500 index funds

Posted on 20.05.2024

Some data from the US indicate that a large proportion of active mutual funds are failing to keep up with the performance of ETFs indexed to the S&P 500. SPIVA's results (S&P Indexed Vs. Active) Active funds are finding it increasingly difficult to beat passive funds, the ETFs. In ‘La Stampa’, Glauco Maggi reported the data of the SPIVA (S&P Indexed Vs. Assets) analysis. The result is that in 2023 only 40 per cent of active US equity funds managed to beat funds indexed to the S&P500 market index. The result is rather in line with the historical average: data from the last twenty-three years (maximum span of SPIVA's measurements) show that only 37% of funds beat the market index. Active funds: results in the areas of small caps and bonds Again in ‘La Stampa’, Maggi analyses SPIVA's data a little more closely: as far as active management is concerned, it was the equity funds investing in small caps that achieved an above-average res ...

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Silver, platinum and gold: precious metal prices set to surprise?

Posted on 17.05.2024

Among the asset classes that have experienced a bullish phase in recent months are precious metals such as gold, silver and platinum. Gold, silver and platinum: Saxo Bank's price forecasts It is a period of rising prices for three precious metals: gold, silver and platinum. In this regard, Sam Meredith (CNBC) reports on some predictions made by analysts at Saxo Bank: according to the Danish bank's experts, gold could soon test the $2,400 an ounce mark, silver reach $30 an ounce, and platinum $1,130 an ounce. Gold's momentum In an interview with CNBC, Edmund Shing, chief investment officer of BNP Paribas Wealth Management, points out that gold has now (and for the time being) abandoned its traditional negative correlation with (historically high) interest rates and the dollar. In part, the surge in gold prices can be explained by central bank purchases. In particular, the Chinese central bank bought gold for the 17th month in a row. Can silver also approach its historic ...

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Dow Jones breaks through 40,000 points: but many other asset classes also rise

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  • Financial markets/economy
Posted on 17.05.2024

The Dow Jones index broke a new all-time high and broke a psychological threshold, but many other asset classes are also in a bullish phase. In general, markets, especially in the US, are characterised by prevailing optimism. But what are the prospects for the US economy in the coming months? An across-the-board bull phase In addition to having broken its own all-time record, the Dow Jones crossed the (psychological) 40,000-point threshold. And yet, as Gregory Zuckerman and Gunjan Banerji write in the ‘Wall Street Journal’, it is not only one of the three major US indices that is going through a bullish phase: the prices of precious metals, technology stocks and speculative assets such as cryptocurrencies are also rising, but also the yields of banking or savings products (certificates of deposit, for example), as well as fixed income coupons. What makes markets optimistic? As Zuckerman and Banerji write, the performance of the index and, more generally, of the US stock ...

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Supplementary pensions: investors' myopia and the role of advice

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  • Retirement provision
Posted on 16.05.2024

Saving for retirement is often seen as a forward-looking choice. However, the inclination of many savers is to postpone the decision or to be discouraged by difficulties in choosing a product that is right for them. In this sense, financial advice can play an important role. The inclination towards short-sightedness Experts dealing with supplementary pensions and retirement savings often agree that there is a lack of foresight on the part of savers. This happens because of a number of typical human inclinations. These inclinations, in their financial repercussions, are studied by behavioural finance. Patricia Lüer, Project Manager at Horváth, writes about this in an article written for the German banking association (Bankenverband), also taken up by the magazine FONDS Professionell. Overcoming myopia when it comes to retirement savings One of the tendencies of human beings is to often favour the present over the future. However, this leads to postponing choices regardin ...

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US inflation slowdown and market euphoria

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  • Financial markets/economy
Posted on 16.05.2024

Although slightly, US inflation slows down: general market rally and new records for the three major US stock market indices. US inflation data for April The latest data on US inflation show a slight slowdown: the Consumer Price Index rose by 3.4 % over the past twelve months, up from 3.5 % in March. The monthly figure shows a 0.3 % growth compared to the 0.4 % growth recorded in the previous two months. Gasoline and shelter prices accounted for 70 per cent of the total increase. Market rally and record highs for US indices The markets seemed to take these data very positively: Europe closed slightly higher, while the three major US indices reached their all-time highs, with the S&P 500 up 1.2%, the Nasdaq 1.4%, and the Dow Jones 0.9%. Asian markets also reacted positively to the US inflation data. The Fed's monetary policy variables As stated in an article by Natalie Sherman of the BBC, this data is unlikely to be conclusive as far as the Federal Reserve's monetary p ...

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