Today, HM King Felipe VI inaugurates the 16th Spain Investors Day in Madrid. This forum brings together major investors, companies, government officials, and regulators over two days (from 9:00 AM to 5:30 PM at the Four Seasons Hotel) to exchange opinions, viewpoints, and concerns. According to Benito Berceruelo, founder of Spain Investors Day, “we must make Spain an attractive country and improve the things we are told to improve.” Regarding…
F.R. | 26% of retail investors in the UK and US say they “have little understanding” of their asset portfolios and “feel they make uninformed decisions” about them, according to the Shareholder Voice 2022 survey of 3,000 people in the two countries by UK financial services firm Equinity. According to the survey, the most likely profile of the uninformed shareholder is a person between 41 and 56 years of age,…
Ricardo Jimenez (Sigma Rocket) | The average holding period of a stock has been dropping for many years – and in 2020 it hit a new low. A study by Reuters of NYSE companies found the average holding period is now five and a half months, compared with 14 months in 1999 and five years in the far-away 1970s. Over recent years, falling brokerage fees and higher volatility have accelerated the short-termism of investors.
Markets’ indicators are showing a lack of any estimation of risk. To begin with, they are at record highs, although some observers say there is still upside potential. Investors’ perception of risk is very slight or zero and, as a result, the risks are very high for them.
AXA IM | The past year has witnessed something of a turn-around in investors’ perceptions of the economic and financial outlook, chiefly on the back of hopes that the cloud of secular stagnation may be starting to dissipate. In our 2017 outlook, we take a step back from current market jitters and examine the fundamentals behind the present backdrop of ultra-low interest rates and poor economic growth. Simply we challenge the dominant idea that this is the fate of our future as investors.
ZURICH | UBS analysts | ETF flows continue to reward positive economic data from the US with spectacular equity inflows for the second consecutive month. Europe was once again a laggard in both economic terms and in flows: Germany, Spain, Italy, and France, saw net outflows in December due to a combination of growth, Grexit and deflation concerns.
MADRID | The Corner | It seems Mario Draghi is preparing the markets and the ECB’s Government Council for further action as soon as next December. Investors are reluctant to trust Mr Draghi’s words, but they seem to be more confident lately. However, this “affair” will come to an end if the ECB does not take effective measures. According to market watchers at Link Securities, markets will closely monitor the ECB’s Government Council meeting, which will be crucial for investors to maintain their trust in the European institution.
ZURICH | UBS analysts | The US continues to come top of the class in economic terms which, combined with the effect of central bank policy divergence, is clearly driving global flows. Country- specific equity ETF flows in October show that the US saw by far the largest inflows last month followed by the UK, Korea and Australia. Europe was once again a laggard in both economic terms and in flows: Germany, Spain, Italy, and Sweden, saw net outflows in October due to these growth concerns. Within BRIC, China saw the largest outflow since April last year as growth concerns continue to persist but Brazil, India and Mexico saw inflows.
MADRID | The Corner | Investors experienced the ECB’s stress tests hangover and were quite dovish throughout the Monday’s session. Apparently Tuesday won’t be any different and they will remain prudent until Wednesday, when the FOMC releases its conclusions. Markets expect the Fed to finish tapering, as well as an interest rates hike, experts at Link commented.
MADRID | By J. J. Fdez-Figares (LINK) | After the rises experienced by the European and American stocks on Monday, these markets showed yesterday certain weakness, leading to a mixed closing in the major indices in Europe and negative in US. Thus, and since the beginning of the day in Europe some profit taking by the short-term investors were observed, who profited from the rebound that many values experienced on the day before. As there was a lack of relevant developments in the three main geopolitical conflicts (Ukraine, Iraq and Gaza), the investors’ attention turned to macroeconomic data, particularly towards indices released yesterday by the German institute ZEW.