Currencies are fast becoming 2015’s big investment risk. A factor once largely ignored can now make or break performance. Already, sharp moves this year in the Swiss Franc and Euro have hit some funds hard. But, do investors get enough information from managers about the risks being run? Although many funds do not hedge, monthly […]
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Tag Archives: Markets
QE’s unintended consequences: Pension deficits to hit balance sheets
February 5, 2015 
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QE is having some serious unintended consequences, increasing pension scheme deficits and hitting company finances. Driven by liquidity and deflation fears, UK government stock, gilts, beat shares and most other asset classes in 2014. Long dated gilts gained over 20%. The trend has even accelerated already this year. Yet many UK pension funds, endowments and […]
Continue reading US Dollar’s impact on emerging markets may have just begun
December 16, 2014 0 Comments
Investors rarely worry about the global economy running out of money. Faith in central banks and liquidity is deeply ingrained. It may even just be cynicism; a belief that central banks will print whatever politicians want. But could the global economy be entering a period where US Dollars are scarce? The Dollar is nearing an […]
Continue reading Risks for blue chips: Disruption for supermarkets, banks, autos & big oil
November 17, 2014 0 Comments
Results of most for the third quarter are coming in ahead of City forecasts. But it is the exceptions, such as Tesco and Morrisons, that have grabbed more attention. Headlines have focused on accusations of poor management and governance failure, and the deeper long-term problem has been largely overlooked. It is clear that some industries […]
Continue reading Why do the biggest companies disappoint on governance?
October 16, 2014 0 Comments
Tesco’s high profile failure reveals the interaction between incentives, failed strategy and governance. Unfortunately, despite hiring what should be the best non-executives, the record shows the biggest companies have more governance blow-ups. What is it about the way that big businesses operate that makes them more accident-prone, not less? Even the investors lucky enough not […]
Continue reading When will the ECB crack down on banks’ related party lending?
September 22, 2014 0 Comments
Will the European Central Bank’s asset quality review spot all the problem banks? Asset quality is a risk factor in the European Banking Authority (EBA) Comprehensive Assessment, but regulators may be missing a key underlying pattern in failure. Banco Espirito Santo has highlighted the issue of inter-related lending: loans to shareholders, affiliates and related parties. […]
Continue reading Why has the Referendum debate been misunderstood?
September 17, 2014 0 Comments
What will the Scottish Referendum leave in its wake? A re-energised or a divided Scotland? And will the threat of divorce leave the UK scarred? Many outside observers have misunderstood the debate, triggering misplaced advice. The divisions are deep, and unlikely to be resolved in a single vote. A yes vote may not just hit […]
Continue reading Private Equity : the tricks of the trade
July 7, 2014 0 Comments
Private equity has a serious image problem – an overhaul of its practices is overdue. The industry has always been seen as hardheaded, but now there is a growing perception of a callous attitude to other stakeholders. Private equity now faces attacks from regulators, investors and politicians. Against a weaker economic background, a re-run of […]
Continue reading Are legendary signals – Copper & VIX – still useful?
July 1, 2014 0 Comments
What should investors make now of the mixed signals that question the strength of global equity markets? The copper price and implied market volatility strike a strong emotional chord with many investors. There is widespread faith in the power of these indicators to signal danger. How should investors set this emotion alongside the facts of […]
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Behavioural Edge 
Risks are growing in big equity and bond funds
Money printing and the current stockmarket boom are increasing systemic risk, pushing problems into new areas. Now the questions is; are some asset managers too big to fail? The financial crisis highlighted risks in banks and insurance, but other areas have been overlooked. Finally, regulators are beginning to recognise risks in the investment sector, and […]
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