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Covid-19 and the dawn of a new market era

April 9, 2020

The era of monetary dominance is over. Helicopter money signals investment regime changes ahead.

The era of monetary dominance is over. Helicopter money signals investment regime changes ahead.

It was the avalanche we have long feared. From record peak to bear market, the S&P fell faster during the ‘corona crash’ than ever before, as the chart below shows.

At peak turmoil, conventional offsets (bonds, gold) proved flaky friends: investors sold what they could, not what they perhaps should. Specialist crash protections allowed Ruffer portfolios to hold their ground.

FB Roundup: Warren Buffett, Solvay and Hays Travel

November 9, 2019

Warren Buffett tops up cash pile to $128 billion, Solvay shakes up structure and management against headwinds, Hays family tout capital reinvestment and the personal touch in Thomas Cook takeover.

Warren Buffett tops up cash pile to $128 billion

The family office of prolific US investor Warren Buffett (pictured) has conserved $128 billion in cash in its third quarter, up from $122.4 billion in the previous quarter, backing up a recession-warning trend revealed in The Global Family Office Report 2019.

Lengthy bull market may “grind higher”

November 22, 2017

While some investors are stepping up their concern around an impending recession, wealth manager Kleinwort Hambros advises it is likely the bull market will continue to “grind higher”.

While some investors are stepping up their concern around an impending recession, wealth manager Kleinwort Hambros advises it is likely the bull market will continue to “grind higher”.

Mouhammed Choukeir, chief investment officer at Societe Generale's UK private banking and wealth management division, said clients are coming to terms with the uncertainties posed by Brexit and Trump.

“These are topics that have been around for some time,” Choukeir said.

Risk dis-Parity? US Treasury volatility creates headache

July 24, 2015

Volatility in the US Treasury market at the end of 2014 could be a taste of the next financial panic. And risk parity, a hedge fund strategy that made hay through leveraged exposure to bonds over the last 20 years, may be part of the problem rather than the solution.

Volatility in the US Treasury market at the end of 2014 could be a taste of the next financial panic.

And risk parity, a hedge fund strategy that made hay through leveraged exposure to bonds over the last 20 years, may be part of the problem rather than the solution.

Risk parity strategies create specific risk levels across an investment portfolio in contrast to traditional allocation models that are based on holding a certain percentage of investment class, such as 60% equities and 40% bonds, within a portfolio.

Wealthy change tack on investments to focus on growth

July 19, 2013

The world’s wealthy intend to take on more risk this year as they try to regain money lost during the global financial crisis, new research reveals.

In a survey completed by the Institute for Private Investors, an educational and networking service for ultra-high net worth individuals, 63% of respondents said they planned to increase their allocation to global equities in 2013 and 53% plan to increase their positions in domestic equities.