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German investor morale brightens

German Investor

German analyst and investor sentiment climbed more than expected in August, a leading survey showed on Tuesday, suggesting Europe’s largest economy is gradually regaining momentum after suffering a contraction in late 2012 and a weak start to 2013. [Read more…]

ECB Lowers Interest Rates

European Central Bank

European Central Bank

Europe’s interest rates have probably reached a bottom. Although the economy has been in recession since Q4 2011, the European Central Bank (ECB) hesitated until this morning to lower its main refinancing rate at which banks can borrow funds by a quarter percentage point to 0.5%. [Read more…]

Opportunities in Indonesia

Opportunities for Global Investors in Indonesia

IDX - Indonesia Stock Exchange

When Asian governments want to give extra stimulus to their economies, they often opt for massive spending on infrastructure – roads, railways, ports, air terminals, bridges, power plants, hospitals. That generates immediate demand for labour and locally-produced materials. Unlike the welfare handouts preferred in the West, it’s a long-term investment in greater economic output. [Read more…]

G20 to curb currency devaluation

G20 discuss Currency

G20 discuss Currency

Moscow- Finance Ministers and central bankers of the Group of 20 (G20) on Saturday pledged not to target exchange rates or devalue currencies for the purpose of making them more competitive. [Read more…]

AEC seeks to end Japanese dominance

ASEAN Economic Community

ASEAN Economic Community

The implementation of ASEAN Economic Community (AEC) in 2015 is likely to reduce the dominance of big Japanese automakers in the region introducing a more level playing field. Smaller Japanese players such as Suzuki, Mitsubishi and Isuzu and new entrants will gain the most from the implementation of AEC, as the level playing field will make it easier to expand their presence and challenge incumbents. However, big Japanese OEMs are still likely to continue to lead the market. [Read more…]

Conference Gives 2013 Outlook on Market

Global Automotive Market

Global Automotive Market

Complimentary web conference reveals which global OEM is expected to cross the 10 million sales mark, while another may be acquired

2013 is expected to be the year of the dragons and eagles striving growth and balancing fall in the European automotive industry. While China is expected to cross 20 million vehicle sales, the U.S. market is expected to reach 15 million sales, a record high since the economic crisis in 2007. On the other side of the Pacific, the ASEAN markets had a tremendous growth in 2012 with Indonesia joining the one million sales club for the first time. [Read more…]

Success in an Unfriendly Neighbourhood

Tel Aviv Israel

Tel Aviv Israel

Few people realize that Israel, despite all its political problems, is one of the world’s most successful economies. Since 2004 its GDP has grown about 5 per cent a year in real terms every year except 2009, when the global economy crashed. [Read more…]

World Bank chief prioritises tackling growth

World Bank Group

World Bank Group

Washington – On his first day as president of the World Bank Group, Jim Yong Kim stressed the role of the 188-member organisation in helping address global growth risks and providing development assistance. [Read more…]

Investment theory

Investment Skills

Investment Skills

New research by two American experts has demolished the key belief of efficient market theory, which several generations of students were taught as the foundation of their investment skills, that high reward is the consequence of accepting greater risk.

Their study of 21 developed and 12 emerging markets that lower-risk low-volatility stocks consistently delivered market-beating returns.

Between 1990 and 2011 the least-volatile decile of developed nations’ shares generated total returns averaging 8.7 per cent a year, while the most-volatile produced a negative 8.8 per cent a year. In the US alone, the comparable figures were a positive 12 per cent average and a negative 7 per cent.

One of the researchers, Robert Haugen, of a California-based research house, says the outperformance by low-risk stocks in every country contradicts “the very core of finance,” turning upside-down the theory about risk and return.

CopyRight – OnTarget 2012 by Martin Spring

for more on Martin Spring see – TheBizSense Views – Views & Forecasting

Modest growth predicted in 2012

The Global Economy

The Global Economy

Mexico City – Finance ministers and central bank governors of the Group of 20 (G20) nations expect modest growth this year as downside risks continue to threaten the global economy. [Read more…]