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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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

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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High-Yield risky, but attracts investors with yields as high as 9%

Posted on 15.05.2024

When a financial product offers (at least, in the short term) moderately high returns, it is usually also characterised by moderately high risks: this is the case with high-yield bonds, which are now characterised by historically high returns and risks. Historically high yields and risks for high-yield bonds High-yield bonds are by definition bond products that offer higher returns than the average returns of their asset class. However, they also carry higher risks, namely the risk of seeing their price fall dramatically on the secondary market or, in the worst case, of seeing the issuer go into default. Default risks, after all, have increased in an environment of high interest rates. Default risks are increasing On this subject, in ‘Financialounge’, Leo Campagna reports on some considerations by Justin Jewell, Head of European High Yield Leveraged Finance at RBC BlueBay Asset Management. The manager explains that one of the problems of high-yield bonds are precisely t ...

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Is it worth investing in an all-equity portfolio?

Posted on 15.05.2024

Building an investment portfolio often means allocating capital between different asset classes (shares, bonds, cash, etc.). However, it cannot be ruled out that an all-equity investment portfolio may in certain cases prove effective in achieving investment goals. Emergency fund and debt settlement Are there cases in which it may make sense to build a portfolio consisting entirely of equities? In Barron's, Mallika Mitra tries to answer this question. Mitra points out that each investor's situation is different and that in each case it is necessary to a) set up a fund that can be drawn on in the event of any eventuality or emergency and b) pay off any debts and interest on loans or credit cards. In addition, it is necessary to clarify to oneself one's investment objective: only then can an effective investment strategy be devised. A 100% equity portfolio With this in mind, Mitra writes that an investor with an adequate risk tolerance and a long investment horizon might c ...

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Artificial intelligence: the attempted run-up by Meta and Chinese tech companies

Posted on 14.05.2024

The race to develop new, increasingly high-performance artificial intelligence software does not stop and involves further large American companies, such as Meta, but also new Chinese start-ups. Meta and open source artificial intelligence software Meta, the company founded under the name Facebook by Mark Zuckerberg, plans to spend USD 40 billion on its artificial intelligence projects in 2024. As Pier Luigi Pisa explains in the ‘Affari&Finanza’ insert of the daily newspaper ‘La Repubblica’, this is a figure comparable to that put up by Google and Microsoft. Meta, however, has decided to present itself on the market with a novelty: it will make its artificial intelligence software available to users free of charge. Why provide software for free? The strategy of Zuckerberg's company,' explains Pisa, ’is twofold: a) to attract more users of the platforms controlled by Meta (Facebook, WhatsApp, Instagram, etc.), where it will be possible to ta ...

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GameStop shares beat short sellers again

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  • Financial markets/economy
Posted on 14.05.2024

One of the most famous ‘meme stocks’ of recent years is back in the news, with a sharp rise that caused huge losses for ‘short’ investors. GameStop's sudden rise knocks out short sellers GameStop is back in the news in the financial markets. The video game and entertainment merchandise company recorded a sudden rise in its value on the stock exchange, much like it did in 2021. This rise of 74% in a few hours caused huge losses among short sellers. According to data made available by S3 Partners, these investors, i.e. hedge funds, lost around $838 million.    The return of the "meme stock" As Yun Li of ‘CNBC’ writes, again, it seems that the rise was triggered by ‘Roaring Kitty’, a kind of influencer among the investor community (a post on ‘X’ is said to have triggered the run-up in the stock). The script was very similar to the one that was staged in 2021: investors bought the stock en masse, forcin ...

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