Finance forum: Investments 366 articles - 80.206 readings


Investments are productive means to use resources. In the financial world, investing is a productive way of managing savings. The investor therefore temporarily removes some of their resources to generate a profit. Therefore, those who receive the capital to manage are specialised and professionally qualified to make these savings productive by investing in financial activities as instructed. Follow me


What is the best asset allocation for a rate cut?

Investments

Many market participants expect central banks to begin one or a series of interest rate cuts later this year. How should a portfolio be positioned for these important events? High interest rates to bring inflation back to around 2% After a rapid fall, inflation seems to be struggling to move steadily from around 3% to the 2% target. Writing in the Italian newspaper La Stampa, Sandra Riccio quotes Tara Jameson, fund manager (multi-asset investments) at asset manager Schroders. Jameson explains ...

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Good growth prospects for healthcare again this year

Investments

The medical (or 'healthcare') sector grew by 4.27% globally in 2023, according to the MSCI World Health Care, after contracting by almost 5% in 2022: by comparison, the MSCI World was much more volatile, rising by 24.4% last year and contracting by 17.7% in 2022. What can we expect from the medical sector in 2024? Profit margins and cash flow "Robust operating profit margins" and "strong cash flow" are two of the strengths that Rating Scopes identifies for the pharm ...

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Is quality the key to small caps?

Investments

In recent months, the big US tech giants and, more generally, large caps, i.e. companies with a large market capitalisation, seem to have dominated the financial market scene. And yet, as Andrew Harvie, Global Equity Portfolio Manager at Columbia Threadneedle Investments, writes in an article published in Lamiafinanza.it, small-cap companies remain a segment of the market that is rich in opportunities, albeit not without risk. What are small caps? Small caps are defined as listed companies wit ...

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Investment: Is the electric car the wrong horse to back in Europe?

Investments

The European Union has decided to phase out the production of cars with internal combustion engines by 2035. The alternative is electric cars. But consumer preferences and fierce competition from Chinese manufacturers threaten to put the European car industry under severe pressure. Consumer interest in the combustion engine is growing again There are some reasons to believe that focusing on electric cars in Europe may turn out to be the wrong choice. In the Italian newspaper 'Il Sole 24 Or ...

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Could an interest rate cut benefit high-yield bonds?

Investments

What is the possible scenario for high yield bonds given the European Central Bank's forecast for a rate cut? Interest rates and the bond market The interest rates set by central banks are a benchmark for the cost of money and borrowing. No wonder, then, that these same rates have a direct impact on the bond market. On a duration basis, rising rates favour newer bonds and push down the price of existing ones; when rates fall, as is expected this year, although we do not know when for sure, ...

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Is it better to actively manage corporate bonds?

Investments

What is the outlook for investment grade bond markets? One manager explains that active management can be beneficial in the current market environment. Duration and currency risk In an interview with Sara Silano published on Morningstar, Flavio Carpenzano, Investment Director at Capital Group, describes the scenario for the investment-grade corporate bond market. One of the biggest risks for this sector of the financial markets is duration: duration sensitivity has increased recently as a resu ...

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Goldman Sachs says this is 'the year of bonds': how to take advantage?

Investments

Goldman Sachs believes that 2024 will be a particularly good year for bonds. Let's take a closer look. 2024: 'The year of bonds For a long time, bonds have offered relatively low yields, in line with central banks' expansionary monetary policies. As inflation has risen, central banks have embarked on an upward interest rate cycle, pushing up bond yields and bringing them back into the focus of many investors. The situation for the bond market looks set to remain favourable into 202 ...

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Why trust gold a little less and stock markets a little more?

Investments

Investing in gold is seen by many as a strategy to stabilise a portfolio's returns. However, investing in gold could be more volatile and risky than people think. Good outlook for gold in 2024 Gold now seems to have steadily climbed above $2,000 an ounce. Some analysts believe that the price could continue to rise this year: on the one hand, central banks are expected to start cutting interest rates, and on the other, the economic and geopolitical scenarios are full of uncertainties. In sh ...

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