Pity the fund managers ? Well, at least tell them where to put their money.....

25/3/15

  

Pity the fund managers ? Well, at least tell them where to put their money.....

INSIGHT, the Financial Times Markets and Investing , p.30

Henny Sender has a look at a particular issue facing investors : with too much money looking for a home in the major markets, prices are up and yields down ..... in short , little or no value to be found. In the past in these conditions, managers might look to diversify into emerging markets with much higher yields but today currency considerations mean it's just not worth it. We've looked before at how emerging nations, up to their eyes in US dollar-denominated debt, are facing a double-whammy of an already strong dollar and the prospect of US rate rises. The foreign exchange risk associated with investing in those markets, or the cost of hedging against it, is just too high. 

We've arrived ...... "Noflation"

BUSINESS COMMENTARY, the Times, p.45

UK inflation has hit zero , if anything slightly earlier than expected. Andrew Clark takes an upbeat view on reaching this milestone, emphasising the point that without the hugely volatile elements of oil and food prices, inflation would register a perfectly healthy 1.2%.

More on Greece and it's not good.....

"Europe is once more sleepwalking towards the abyss" , the Daily Telegraph, p.B2

Those growing tired of the seemingly endless coverage of the Greek situation had better stiffen their sinews ..... this isn't going away. Jeremy Warner warns that those in power better stop butting heads pretty soon or the consequences could be dire, and not only for the Greeks. It's easy to be scathing about the antics of Greece's new Syriza-led government, but they're right when they say that the deal the country was forced into in 2010 only made things worse not better. Read this article for a summary of where we are and how we got there.