The most used and abused phrases of 2013

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The media and markets’ love of neologisms can obscure the investment reality New global themes and trends, usually relayed and reinforced by the 24-hour news cycle, have a funny way of overpowering fundamental analysis of markets and economies. My favourite example in 2013 was failed electronics retailer Tweeter, which saw its share price soar by […]

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Super-Abenomics: surprising speed of reform ahead

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The Japanese Upper House election held on Sunday 21 July was a true test of the country’s attitude to ‘Abenomics’. The result was resounding support for Japanese Prime Minister Shinzo Abe’s economic agenda as his party, the Liberal Democratic Party (LDP), achieved control of both houses of parliament, something not seen since 2010. The LDP […]

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Equity: the appeal of high-dividend-yield stocks in medium-and long-term investments

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Nikko AM, the global parent company of Tyndall AM, conducted research last year into stocks with high dividend yields and was of the opinion that: Relatively high returns could be expected for such stocks compared with ordinary ones in the medium and long term; and Fluctuations in the prices of high dividend yield stocks would […]

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Is the commodities super-cycle over?

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Time to move on from commodities to global stock picking Morgan Stanley last week joined a growing list of big investment banks beating a partial retreat from commodities trading. Like Barclays, UBS and Deutsche Bank, it is struggling to make sense of a business where revenues have tumbled since the hey-day of the natural resources […]

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Fidelity: Thoughts on the Fed’s QE exit

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We have known for some time that Ben Bernanke has worried about the build-up of risks stemming from investors’ reach for yield which has ultimately stemmed from the Fed’s highly accommodative monetary policy. On the other hand, we also know that Bernanke is fully cognisant of the risks associated with any sudden pick-up in yields […]

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Threadneedle June economic and market update from CIO Mark Burgess

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Investors are currently more focused than ever on the US economy.  This follows comments from the Federal Reserve indicating that signs of the recovery gathering momentum would lead them to “taper” the level of quantitative easing, from the current rate of $85bn per month. Consumer confidence and expenditure are reasonably healthy and the housing market […]

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It’s not the size of the company, it’s the size of the return

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All things being equal, when it comes to Australian equities, small and medium-sized companies are likely to perform better than their large-cap counterparts, says fund manager Hyperion Asset Management. This view was expressed by Mark Arnold, Hyperion’s Chief Investment Officer, who said that the evidence provided by the success of Hyperion’s investment process, with its […]

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Threadneedle economic and market update

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Mark Burgess, Chief Investment Officer at Threadneedle Investments comments on recent market developments: Without doubt, the most significant economic development of 2013 has been the transformation of economic policy in Japan. The authorities have planned a massive monetary injection, combined with a fiscal stimulus and other reforms to encourage growth. Unlike previous attempts by the […]

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Will ‘Abenomics’ work?

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A daring experiment is under way in the world’s second-biggest modern economy. “Abenomics”, formulated by a group of “reflationists”, is about firing “three arrows” at Japan’s economy with the aim of pulling it out of two decades of deflation-ridden, stop-start growth. These three shots include full bore monetary policy, aggressive fiscal policy and a big […]

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Pengana: Time to ring the bell on banks vs. miners

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Potential risk to returns by having an underweight position in resources, overweight financials, especially from such extreme levels says Pengana’s Ric Ronge. The first signs of a correction between banks and miners are showing, as miners have started to rally on better-than-expected US jobs growth, supportive Chinese trade data and further Central Bank stimulus. Ronge […]

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