Financial articles of MoneyController

Positive outlook for dividends in 2025

793
0
Financial products

Posted on 11.12.2024

On average, dividend-paying companies have experienced lower growth than others. Nonetheless, some experts say that in the coming months those same stocks could become more prominent again in some investment strategies. Historically high market prices Large portions of the stock market are at a very high price level, in many cases record highs. Meanwhile, newly issued bonds have to contend with falling interest rates compared to previous months. As Jasmine Li writes in the Wall Street Journal (WSJ), it is precisely in such a scenario that stocks that have so far lagged behind market growth, i.e. dividend-paying stocks, could see their chances rise. Dividend-paying stocks are relatively cheap today In the WSJ article, Logan Capital Management portfolio manager Chris O'Keefe also makes some observations: the manager believes that the very fact that these stocks have lagged behind the growth of the S&P 500 makes them attractive for investment strategy today. In this sense, he ...

For BlackRock, AI can continue to propel markets

829
0
Mega-trends

Posted on 10.12.2024

A share of the growth in financial markets in recent years has been linked to artificial intelligence: will this technological innovation be able to give financial markets a further boost in 2025? Here are some predictions from the BlackRock Investment Institute. AI: technological innovation or megatrend? Technological innovation or megatrend? The extent to which artificial intelligence will be able to change our lives and the appearance of our societies is being debated. This technological innovation is very much back in the public debate, especially after the release of the online software ChatGPT by OpenAI: it is a generative artificial intelligence programme, trained on the basis of an immense amount of data, and which is able to converse with human beings. But what will be the next innovations in this field? Some predictions from the BlackRock Investment Institute The BlackRock Investment Institute narrows the range of its forecasts a little more: as Sandra Riccio also r ...

Golden weeks for cryptocurrencies, but what are the risks?

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0
Cryptocurrencies

Posted on 09.12.2024

The price of bitcoin is flying and some other cryptocurrencies are also opening up positive prospects. But it should not be forgotten that these are very risky speculative assets. The appointment of bitcoin advocate Paul Atkins to head the SEC As promised on the campaign trail, the government to be led by Donald Trump is expected to be supportive of bitcoins. This is evidenced by the announcement of the appointment as head of the SEC regulator of Paul Atkins, an advocate favorable toward the cryptocurrency that, in the meantime, has briefly surpassed $100,000 in unit value. Bitcoins like gold? As Walter Galbiati writes in “La Repubblica,” what seems to have carried even more weight, however, were the words of Jerome Powell: the Federal Reserve chairman compared bitcoins to gold, meaning that the cryptocurrency does not exert its competition on the dollar, but on the safe haven asset. Bitcoins and other currencies, however, Powell added, are assets marked by extremely hi ...

Resisting tariffs also on markets

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0
Financial markets/economy

Posted on 06.12.2024

The business and financial world is already discussing the possible consequences of the implementation of trade tariffs by the future US administration led by Donald Trump. The potential effects of tariffs: increased uncertainty and inflation There is much talk about the extent and consequences of the tariffs promised in the election campaign by Donald Trump, who is set to become the next US president. The corporate and investment world is trying to make predictions and, in the meantime, is preparing for the implementation of the trade tariffs, as Sarah Hansen is markets reporter at Morningstar. These tariffs are likely to have at least two effects: to increase both uncertainty in the markets and asset prices. Who will pay the costs of the tariffs? Morningstar's chief US economist Preston Caldwell, mentioned by Hansen, believes that the introduction of trade tariffs could mean a decrease in real GDP: and although we cannot know now, this decrease could come in the form of highe ...

India, some shadows on the star of the emerging markets

822
0
Financial markets/economy

Posted on 05.12.2024

India brakes in the markets: is it a structural crisis, or is it only a temporary phase? After the run, India's stock market slowdown India's stock market story in recent years is undoubtedly a success story. Christin Jahns (“Das Investment”) reports some very significant figures in this regard: India's financial success was such that its weight on the MSCI Emerging Markets, between 2020 and May 2024, rose from 9 to 19%. This success story, however, Jahns explains, has recently come to a standstill: the Nifty 50 index, for example, has lost 10% since its all-time high a few weeks ago, while the rupee has weakened significantly against the dollar. Three problems today for the Indian financial market The reasons for this slowdown, explains Jahns, are partly due to the return of investor interest in China after the launch of measures to support the economy. Then, he goes on to read in “Das Investment”, the quarterly results of Indian companies, ...

Multi-asset portfolios: is the worst over?

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0
Financial strategy and management

Posted on 04.12.2024

The multi-asset investment strategy seems not to have been rewarded lately by the markets. Yet, according to two managers, it may be able to build solid returns over time. The nature of a multi-asset strategy In a discussion conducted by the magazine ‘FONDS Professionell’, Michael Schoenhaut and Jakob Tanzmeister, multi-asset strategists at J.P. Morgan Asset Management, explained the reasons for the weak performance of the multi-asset fund segment: in particular, these funds typically invest in equities and bonds, so that they can take advantage of the fixed income component during bear market phases and, at the same time, profit from stock market bullish moments. Multi-asset funds to the test of the markets Over the past few years, multi-asset strategies have been penalised mainly by the positive correlation of stocks and bonds: in contrast to the more typical inverse correlation of the two assets, a fall in the value of stocks has been matched by a fall in the value o ...

Crisis in France, a manager urges caution

846
0
Investments

Posted on 03.12.2024

France is going through a phase of political instability that could also have repercussions on the financial markets. But what is the situation on the French market, also in light of some structural problems? The spread between OAT and BUND rises Michel Barnier's government has a big problem: the approval of the budget law for 2025. Tensions within the French government have put the financial markets in turmoil: the spread of French government bonds (OAT) over German government bonds (BUND) has risen almost to 90 points, even exceeding the spread between Greece and Germany. Investors are demanding higher yields to continue investing in French debt. The two stumbling blocks of the French budget law for 2025 The problem facing Barnier is Marine Le Pen's opposition to the approval of a budget law that envisages 60 billion in spending but, above all, huge cuts. As Chiara Santilli explains in ‘Focus Risparmio’ magazine, two of the most debated issues concern a) the i ...

Inflation resurfaces, but for the ECB this is no surprise

847
0
Financial markets/economy

Posted on 02.12.2024

After months of decline, inflation in Europe is on the rise again: but this is not surprising and does not cast many doubts on the ECB's next move; it is a different matter, however, for the months to come. Inflation rises again After inflation had fallen below the ECB's monetary policy target (and beyond) of 2% in October, price increases accelerated again in November, rising to 2.3%. A similar situation was recorded by core inflation, i.e. the rate of price growth of a basket of goods that excludes energy and unprocessed food: in this case, the increase was from 2.7% to 2.8%. It should be added, however, as Riccardo Sorrentino writes in “Il Sole 24 Ore”, that the other ‘core’ indices confirmed a basic inflation rate of 2.7%. Prices of industrial goods and services As Sorrentino writes, it was mainly unprocessed foodstuffs, alcohol and tobacco that weighed on inflation, as well as a slowdown in the decline of energy prices. The industrial segment re ...

Can asset management get Europe's competitiveness back on its feet?

855
0
Financial markets/economy

Posted on 29.11.2024

The European Union is facing increasingly urgent geopolitical challenges in recent years. But how could the capital market and asset management help it to overcome these challenges? The European capital market is a resource for tackling geopolitical challenges Increasingly, there is talk of the need for the European Union to strengthen itself so that it can compete, both economically and in negotiations, with today's great geopolitical champions, such as the United States and China, but also India and Russia. For example, it is pointed out that the European capital market is very small compared to that of the US, partly because it fails to attract a large amount of savings. The channelling of savings into the European financial system would mean, through the mediation of competent asset management companies, a very useful financing channel for many European companies. Simplifying the capital market in Europe and making it more efficient This is the context of the proposal by th ...

Why invest in emerging markets today?

859
0
Financial markets/economy

Posted on 28.11.2024

Over the past five years, emerging markets have underperformed more advanced markets, but there are those who believe that undervalued stocks can be found in this large market segment. Emerging markets lag behind In the financial market race, emerging markets have lagged behind. As Spencer Jakab points out in the Wall Street Journal (WSJ), looking at the MSCI index, global equities have been growing at a rate of 12% per year over the past five years (US equities are up 15%), while emerging markets have only been growing at an annual rate of 4%. Jakab writes that this divergence is explained by the fact that a) the global MSCI is 65% composed of the US financial market, b) the emerging markets index has been adversely affected by China's recent difficulties in attracting investment capital. Problems and potential among emerging countries The result of this situation is that emerging markets - which had grown in the first decade of the 2000s, partly thanks, Jakab explains, to ris ...

Gas: will higher prices soon be a warning?

900
0
Raw materials

Posted on 27.11.2024

The price of gas has been a topic of much discussion in 2022: now that the coming winter is expected to be in line with the cold temperatures of historical averages, it is possible that the price of the raw material will start to rise again in the coming months. Europe is increasingly dependent on liquefied natural gas Since Vladimir Putin's Russia invaded Ukraine in February 2022, Europe's sources of energy supply have changed. As stated in an article in the ‘Financial Times’ (FT), written by S. Tani and A. Smith, one of the most conspicuous consequences is that the share of liquefied natural gas (LNG) has grown significantly: from 20% in 2021 to 34% today. Today, the price of gas is still quite low, but what awaits us is a winter that meteorologists predict will be less warm than the particularly mild winters of the past two years. Supply to Ukraine and an expiring contract The point is that, as we read in the FT, in the winter period the demand for gas does n ...

Commodities, equities and inflation: useful signals coming?

858
0
Financial markets/economy

Posted on 26.11.2024

Is inflation a problem we have temporarily left behind, or could it return sooner than we imagine? The Trump administration and the possible inflationary push Based on the promises made during the election campaign, it is expected that the economic measures of the next Trump administration will act in the direction of higher inflation: from tax-cutting policies to deficit spending to import duties. Are commodities and stocks showing any signs of a possible return of inflation? Isabel Wang on the ‘MarketWatch’ portal also asked this question. Gold and oil prices As Wang explains, gold and oil prices have risen since Trump's election, but this does not mean that they signal in advance the arrival of a new wave of inflation. Donald Trump's now-famous ‘drill, drill, drill’ actually suggests,’ Brian Szytel, co-chief investment officer at Bahnsen Group, tells MarketWatch, ’that Trump's energy policy will encourage downward pressure on oil p ...

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