This edition of the Research Clippings Weekly Investment Research Digest features insights features research on emerging market inflation linked bonds, municipal bonds, broader emerging market debt, upside risks to the oil price, the improving global economy, Japan's recovery, some important points on equity portfolio strategy, and some notes on the German election.
Saturday, 7 September 2013
Tuesday, 9 October 2012
Warren Buffett is primary shareholder, chairman and CEO of Berkshire Hathaway, and ranks amongst the world's wealthiest people. Warren Buffett made much of his billions through applying his keen business sense and his value oriented investment style - he sees his core talent as being a skilled allocator of capital; and owes much of his investment success to picking skilled managers and letting them get on with running the business. Clearly as one of the world's most successful investors, his methods and path to success have been closely studied by many aspiring investors around the world, and in a game where knowledge is power it makes sense to learn from this master of investing. The following 5 documentaries provide an insight into the life of Warren Buffett, how he made his money, what he thinks about, and how he invests.
Saturday, 11 August 2012
The European sovereign debt crisis has been a dominant force in the banking system, financial markets, and global economy over the past couple of years. Each day we have a different headline, either explaining how things are getting worse and worse, or how a big solution is imminent. But what is the cause of the crisis? How did it come about? And how will it ultimately play out? These documentaries provide a concise and engaging means of understanding the euro zone debt crisis.
Thursday, 2 August 2012
Initial jobless claims rose moderately last week, but this doesn’t tell us much. The good news is that claims remain close to a four-year low and the unadjusted year-over-year change in new filings for unemployment benefits continues to fall by roughly 10%. In short, there’s still no sign of trouble in the claims data, which suggests that the labor market will continue to expand slowly.
So Mr. D spoke and said nothing at all. Those that expected a “big stick” from the boss at the ECB are very disappointed. The initial market reaction to this dud is a down move in equities and the Euro while Italian and Spanish yields soar. Given the high expectations Draghi set the market up for, I can’t imagine a worse outcome.
Most observers are united in their view that it now 'all comes down to Mr. Draghi' and the extent to which he manages to meet expectations on Thursday. We will of course comment once we have seen the press conference and digested the details, but in the meantime it is noteworthy that German resistance against a banking license for the ESM has hardened in recent days.
Once I was talking to my boss at Provident Mutual about exotic options, like barrier, knock-out, and knock-in options. As I described them to him his reactions were:
- Why would I want to take that risk?
- But when describing the other side of the trade, he would say “That’s an attractive proposition.”
Wednesday, 1 August 2012
Earlier today the Institute for Supply Management published its July Manufacturing Report. Today's headline PMI is showing the second month of contraction after 34 months of expansion. Here is the report summary:
The PMI registered 49.8 percent, an increase of 0.1 percentage point from June's reading of 49.7 percent, indicating contraction in the manufacturing sector for the second consecutive month, following 34 consecutive months of expansion.
Tuesday, 31 July 2012
Disposable personal income (DPI) is rising again, but consumption remains flat. That’s the message in today’s update for the June income and spending report from the Bureau of Economic Analysis. The trend is certainly encouraging on the income front. But the unchanged level of personal consumption expenditures (PCE) is a problem if it continues.
Labels: James Picerno