Multi-asset – The Great Debate
Investors keep going big in multi-asset funds. What’s exactly their appeal, which strategies offer most value and how can you identify them?
Wellershoff & Partners
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US equity CAPE at a 13-year high – time to sell?
The cyclically adjusted P/E ratio of the S&P 500 is at its highest level since 2004. What does that say about return prospects for US equities going forward? Gabriel Bartholdi, head of asset allocation at Swiss consultancy firm Wellershoff & Partners, gives his view.
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Don’t buy America!
Investors who are buying into the Trump rally now are likely to be disappointed. Long-term return prospects for the asset class are severely impaired.
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Is this final market wave about to hit the rocks?
Global equity markets are experiencing their worst start to the year since 2008. While some are fearing this is the start of a bear market, others believe markets are oversold and equities now look at their most compelling in years. There are valid arguments on both sides, but some seem more right than others.
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Turning up the heat on active managers
Active managers are under fire from all sides. Regulators in the Nordic countries are leading the attack on closet trackers, and cheaper ETFs are eating market share. Fund selectors are looking on this favourably, though the asset management example is not followed by the wholesale sector in every European country.
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Asset managers shrug off pessimism on US equities
Fund manager sentiment towards US equities had been negative for much of this year, with most asset management companies expecting a negative return over the next 12 months. But their outlook has brightened in October. Fund selectors have also started to be more constructive about the asset class.
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Market correction ahead when Fed raises rates, says Klement
Both fund selectors and fund managers have been bearish about US equities for quite a while, against a backdrop of the Fed planning to raise rates, possibly as early as this week. Now, Joachim Klement, chief investment officer of the Swiss fund consultancy Wellershoff & Partners, has provided a statistical back-up for their pessimism.
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Which equities will fare best in the next 5 years? Joachim Klement knows, part 2 of 2
Financial consultancy Wellershoff & Partners recently analysed the return prospects for equity markets in Asia, Europe and the US, The outcome? Europe will outperform the US by about five times.
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Alternative Ucits – better than hedge funds?
Demand for liquid funds with a mandate to invest in derivative strategies appears insatiable in Europe, with net fund flows having exceeded €7bn each month since February. And a convincing majority of fund buyers wants to continue adding to their absolute return holdings, according to EIE’s latest data. But do these so-called alternative Ucits funds…
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Investors boost European equity holdings as Grexit fears fade
European investors appear to have shrugged off their worries about a Grexit, with the Euro Stoxx 50 index up 2.4% on Monday. Indeed, the consensus that European stocks are the place to be has returned, also among the continent’s fund buyers.
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The dollar will get stronger, just look at the expensive stocks!
Relatively high valuations in a particular stock market are followed by a steady appreciation of the home market’s base currency in the next five years. Therefore it’s very likely that the dollar will resume its upward trajectory versus the euro.
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Preparing for the storm
Relentless easy monetary policies and short term rates at virtually have kept market volatilities at remarkably low levels. Preparing for the next spike may not be such a bad idea as the effects of central banking measures start to wane.