"Syria is one of those exogenous things, and it is tough to judge the implications. Military events that tend to be short-lived, like this one might be, have actually proven to be phenomenal buying opportunities."
The last weeks of summer have been marked by renewed pressure of capital outflows and exchange rate devaluations in several systemically relevant emerging markets. This is just the latest round of a global portfolio rebalancing that has been in motion since May 22.
Muriel "Mickey" Siebert, who passed away on Saturday, Aug. 24, 2013, in Manhattan, is a legend on Wall Street. Needless to say, Siebert knew a thing or two about Wall Street, about bonds and about regulatory oversight (or lack thereof).
Just the thought of reduced Fed purchases has caused investors to shiver, interest rates to rise and bond prices to fall. So, to an extent, the marketplace has already anticipated some reduction in Fed purchases.
International long-term private finance to developing countries has changed dramatically in the wake of the global financial crisis. In such a context, it is no surprise that the creation/expansion of national and multilateral development banks has been getting so much attention.
If your grandfather was wise enough to determine a suitable asset allocation and invest in a globally diversified portfolio of low-management-fee index funds, you should follow his example and be grateful you inherited his wisdom.
Our feelings about the stock market are heavily influenced by the investments we already own, a phenomenon known as "anchoring." Many of us also suffer from "recency" bias, the tendency to read too much into short-term market performance.
Commentary and debates from some of the most talented brains in economics reveal a myriad of differing opinions surrounding orthodox and unorthodox monetary policy, but one fact we can be certain about -- QE cannot last forever.
As the government's role as economic hall monitor is debated and global markets and foreign economies adjust to their own challenges, our focus is on investing in the old-fashioned companies with strong balance sheets, increasing earnings, strong cash flow, and seasoned management teams.
For most of us, the word "bonds" brings to mind a savings bond that family members (or friends of the family) may have given us when we were born. But in reality, bonds can be an important component of a well-diversified portfolio.
If you lose 50 percent of your nest egg and then earn back 20 percent annually, you'll still be down almost 15 percent because it takes twice as long to crawl back to even when you lose that much money.
The subnational debt market in some developing countries has been going through a notable transformation. Private capital is emerging to play an important role and subnational bonds increasingly competing with traditional bank loans.
As we have suggested many times over the past several months and years, stocks are increasingly viewed as a more attractive investment versus bonds. While this is not necessarily a bad thing, it is not necessarily an indicator of continued strength either.
Imagine trusting your life savings to an investment professional who can't articulate a scientific basis for her recommendations. Are you really supposed to rely on some ill-defined "art" and hope for the best?
The possible loss of eagerly anticipated labour reforms, financial restrictions and market contagion provide shorter term sources of turmoil. However, existing reforms are likely to continue, market retrenchment is healthy and to be exploited for longer term opportunities.