Saturday, 7 September 2013

Weekly Investment Research Digest - 7 Sep 2013

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.

Tuesday, 9 October 2012

Top 5 Videos on Warren Buffett

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

6 Documentaries on the European Sovereign Debt Crisis

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

Jobless Claims Rise, But Remain Near 4-Year Low

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.

A Hint From Draghi on the Euro?

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.

Euro Area – More Wrangling, All Eyes on Draghi and the Roving Crisis Ambassador

The Upcomming ECB Decision: 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.

Limitations of Credit Default Swap Spreads

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

ADP Estimates Nonfarm Payroll Growth at +163,0000; Why I'll Take the Under

ADP job estimates have been on the high side of BLS estimates for months, and I expect that to be the case again this Friday. Please consider some snips from the July 2012 ADP National Employment Report®

US Manufacturing PMI: Fractional Contraction

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

Personal Income Rebounds In June With Flat Consumer Spending

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.