Is it possible for the business media to turn ordinary market volatility into a negative correction or even a crash?
Taking it as read that modern portfolio theory (MPT) did not protect investors through the 2008 global financial crash, when many saw their diversified portfolios contracting by 30% to 40%, does this constitute a failure of the MPT approach?
There are many ways to take a fresh look at modern portfolio theory (MPT), but perhaps the most obvious is to tackle the criticism that MPT fell on its face in the 2008 crash, when its balanced portfolio approach conspicuously failed to save investors from taking a caning. First, though, in Part One we will take a brief detour through a little investment history.
Picture the following. You are a small start up with a wonderful new gizmo which brings significant efficiencies and cost savings to industry X. No sooner do you open your doors when you get a letter from a "patent troll" saying you are infringing their patent (unspecified) and you need to pay them a license fee or be sued. You "know" the claim is spurious, but to prove it in court could cost you anything from a few hundred thousand pounds to a few million.
Each week QFINANCE.com brings you five things to look out for in the week ahead (03-02-2014). Essential news that will shape the week and help you keep ahead in the world of business and finance.
By their very nature Exchange Traded Funds are a beta play. You get the market performance, not outperformance. But that only tells a fraction of the ETF story.
Each week QFINANCE.com brings you some of the biggest news stories from the past five days (January 17 – 23, 2014) in finance and business – essential reading to keep you up to date with the latest topics.
Ever since advanced market central banks began rolling the printing presses, the warnings from various quarters foretelling the implosion of fiat currencies have been getting louder and louder. The lack of trust in the custodians of fiat money has provided a fertile context for the rise of Bitcoin, the ultimate digital alternative store of value as against mainstream, central bank managed currencies like the US dollar, sterling and the euro.
Until the World Trade Organisation’s (WTO) historic “Accord” in Bali, in November, it had seemed as if the EU’s chemicals sector was doomed to lose more and more market share to emerging market economies in general, and China in particular. The EU’s trade body for the chemicals sector had noted that, although the European chemicals sector consists of some of the biggest names in the industry, it is gradually losing ground to both the Americas and China.
Ian Fraser travelled to Hong Kong as a guest of the Hong Kong Trade Development Council. In this blog, he reports on Ding Xuedong's speech at the Asian Financial Forum as the chairman of China's largest sovereign wealth fund and how Chinese investment giant warms to US shale revolution.