Leverage: Nothing is Good or Bad…
Tuesday, 17 March 2009 | 5:19 pm
Leverage. It always gets blamed whenever bad things happen to investments and markets. But leverage in itself is neither good nor bad. Leverage is a magnifier of returns, both positive returns and negative returns. The idea behind leverage is that it can be used to make a small return into a big return. Here is
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China US Dialogue
Monday, 16 March 2009 | 10:49 am
Dear China, Thank you for being a good partner over the last decade. You have been a great help in helping to keep inflation low by being a low cost producer. We have been happy to export our productive capacity to you. We have been happy to buy your exports. While this has created
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Asia to rally
Friday, 13 March 2009 | 9:59 am
We never used to use the ANR function on Bloomberg – it always seemed a bit pointless tracking analysts’ recommendations and target prices which for the most part followed share prices with a six month lag – but we have now become converts.
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Hedge Fund Regulation
Friday, 13 March 2009 | 9:37 am
With the meltdown in financial markets and the near collapse of the banking system last year, hedge funds have come under increasing regulatory scrutiny. Whether or not this is justified is another matter. There is certainly justification for more scrutiny and more useful regulation with the emphasis on the useful. Unfortunately the trend has
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Why Investors Are Likely to Return to Hedge Funds
Wednesday, 11 March 2009 | 9:56 am
Equity and credit markets continue to fall. Investors have shifted their allocation into cash and government bonds. Correlations between assets is not 1. In fact, correlations between hedge funds and other asset classes such as equity have fallen from 95% in 2006 / mid 2008 to 70% currently. Moving allocations into a risk free asset
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