BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Family Offices Want More Private Equity]]>http://www.bloggingstocks.com/2010/03/24/family-offices-want-more-private-equity/http://www.bloggingstocks.com/2010/03/24/family-offices-want-more-private-equity/http://www.bloggingstocks.com/2010/03/24/family-offices-want-more-private-equity/#commentsFiled under: ,

The vast majority of family offices -- private companies that manage investments and trusts for a single wealthy family -- is happy with their private equity investments and want more. According to a new report from alternate investment research firm Preqin, 84% of family offices are satisfied with investments in private equity, and 69% are "willing to consider forming relationships with new firms, as of year-end 2009." The opportunity for new inflows, of course, comes with some baggage, as 27% of offices require tighter, more personal relationships with the fund managers with whom they invest.

Continue reading Family Offices Want More Private Equity

Family Offices Want More Private Equity originally appeared on BloggingStocks on Wed, 24 Mar 2010 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>family officesinstitutional investorsinthenewsmoney managementMoney ManagersPreqinWed, 24 Mar 2010 10:40:00 EST<![CDATA[John Bogle Lashes Out at Institutional Investors]]>http://www.bloggingstocks.com/2010/01/20/john-bogle-lashes-out-at-institutional-investors/http://www.bloggingstocks.com/2010/01/20/john-bogle-lashes-out-at-institutional-investors/http://www.bloggingstocks.com/2010/01/20/john-bogle-lashes-out-at-institutional-investors/#commentsFiled under: ,

Vanguard Group founder John Bogle may be 80 years old, but the crusader for individual investors is still going strong, continuing to lash out at the lazy, incompetent, and conflicted institutional money managers who have failed in their fiduciary responsibilities to their investors.

In a brilliant op-ed piece in the Wall Street Journal, Bogle writes that "... far too many of our corporate and financial agents have failed to honor the interests of their principals -- the mutual fund investors and pension beneficiaries to whom they owed a fiduciary duty. The ramifications were widespread -- for the failure of money managers to observe the principles of fiduciary duty played a major role in allowing our corporate managers to place their own interests ahead of the interests of their shareholders."

Continue reading John Bogle Lashes Out at Institutional Investors

John Bogle Lashes Out at Institutional Investors originally appeared on BloggingStocks on Wed, 20 Jan 2010 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Individual investorsinstitutional investorsinthenewsJohn BogleVanguard GroupWed, 20 Jan 2010 12:30:00 EST<![CDATA[Top growth fund manager sours on Apple, U.S. tech]]>http://www.bloggingstocks.com/2009/11/25/top-growth-fund-manager-sours-on-apple-u-s-tech/http://www.bloggingstocks.com/2009/11/25/top-growth-fund-manager-sours-on-apple-u-s-tech/http://www.bloggingstocks.com/2009/11/25/top-growth-fund-manager-sours-on-apple-u-s-tech/#commentsFiled under: , ,

One of the top performers in the U.S. growth fund sector has lost his appetite for tech. Jerry Jordan has booted almost all his Apple (AAPL) holdings from his portfolio, and he's done the same with Google (GOOG). Both, Jordan says, have become too expensive. In fact, he's getting out of almost all U.S. and European tech companies for that reason -- and is turning his attention to China.

Jordan tells Reuters, "The growth [in China] is much faster, it's much more of a green field opportunity."

Continue reading Top growth fund manager sours on Apple, U.S. tech

Top growth fund manager sours on Apple, U.S. tech originally appeared on BloggingStocks on Wed, 25 Nov 2009 09:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>aaplApplecommoditiesfeaturedgooggooglegrowth fundsGrowthFundsinstitutional investorsInstitutionalInvestorsMassey Energyneteasentesoceaneering internationaloiis and p 500SAndP500SOHUWed, 25 Nov 2009 09:30:00 EST<![CDATA[Confidence in global economy dips on monetary easing exit strategies]]>http://www.bloggingstocks.com/2009/11/12/confidence-in-global-economy-dips-on-monetary-easing-exit-strate/http://www.bloggingstocks.com/2009/11/12/confidence-in-global-economy-dips-on-monetary-easing-exit-strate/http://www.bloggingstocks.com/2009/11/12/confidence-in-global-economy-dips-on-monetary-easing-exit-strate/#commentsFiled under: , ,

Confidence in the global economy dipped in November, amid concern that central bank withdrawal of some liquidity would weaken the economic recovery, a new survey of Bloomberg Terminal users indicated, Bloomberg News reported Wednesday.

The Bloomberg Professional Global Confidence Index fell to 60.3 in November from 61.7 in October. However, the index remained above 50 for the fourth straight month, which means there are more optimists than pessimists among those surveyed.

The survey of more than 1,500 Bloomberg users was conducted Nov. 2-6.

Continue reading Confidence in global economy dips on monetary easing exit strategies

Confidence in global economy dips on monetary easing exit strategies originally appeared on BloggingStocks on Thu, 12 Nov 2009 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>global economyinstitutional investorsThu, 12 Nov 2009 14:20:00 EST<![CDATA[Despite stock's sluggishness, Hess remains a buy]]>http://www.bloggingstocks.com/2009/11/06/despite-stocks-sluggishness-hess-remains-a-buy/http://www.bloggingstocks.com/2009/11/06/despite-stocks-sluggishness-hess-remains-a-buy/http://www.bloggingstocks.com/2009/11/06/despite-stocks-sluggishness-hess-remains-a-buy/#commentsFiled under:

So far, institutional investors (IIs) have not noticed that Hess Corp.'s (NYSE: HES) upstream operations (exploration and production) should benefit from high oil prices in the $80 per barrel range. But the argument here is that eventually they will, preferably starting in early 2010, which is why I'm reiterating my Buy rating for the company, first recommended on April 22, 2009 at a price of $50.41.

Right now, IIs are fixated on the lower margins of downstream operations, which Hess and other refiners are coping with, as a result of recession-induced sluggish U.S. gasoline sales. The First Call FY2009/FY2010 EPS estimates for HES are $1.63 to $3.66.

Continue reading Despite stock's sluggishness, Hess remains a buy

Despite stock's sluggishness, Hess remains a buy originally appeared on BloggingStocks on Fri, 06 Nov 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>HESHess Corp.institutional investorsInstitutionalInvestorsoilFri, 06 Nov 2009 17:30:00 EST<![CDATA[Coca-Cola: Pull-back is an opportunity to take a position]]>http://www.bloggingstocks.com/2009/10/20/coca-cola-pull-back-is-a-buying-opportunity/http://www.bloggingstocks.com/2009/10/20/coca-cola-pull-back-is-a-buying-opportunity/http://www.bloggingstocks.com/2009/10/20/coca-cola-pull-back-is-a-buying-opportunity/#commentsFiled under: ,

Coca-Cola's Q3 earnings of 83 cents per share beat the First Call Q3 EPS consensus estimate of 82 cents per share, and, of course, Wall Street drove the shares lower on the morning of the announcement.

Most likely, the above selling stems merely from short-term institutional investors (IIs) exiting the stock, which is why I'm reiterating my Buy rating for The Coca-Cola Company (NYSE: KO), first recommended on February 15, 2009 at a price of $42.68.

Continue reading Coca-Cola: Pull-back is an opportunity to take a position

Coca-Cola: Pull-back is an opportunity to take a position originally appeared on BloggingStocks on Tue, 20 Oct 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>coca colaCocaColadrinksinstitutional investorsInstitutionalInvestorssodasport drinksSportDrinksTue, 20 Oct 2009 17:30:00 EST<![CDATA[Hedge fund investors happier now than a year ago]]>http://www.bloggingstocks.com/2009/10/16/hedge-fund-investors-happier-now-than-a-year-ago/http://www.bloggingstocks.com/2009/10/16/hedge-fund-investors-happier-now-than-a-year-ago/http://www.bloggingstocks.com/2009/10/16/hedge-fund-investors-happier-now-than-a-year-ago/#commentsFiled under: ,

It's not exactly a shock, but tangible confirmation is always nice. Alternative investment research firm Preqin found in a recent survey that institutional investors are happier with their hedge fund returns now than they were a year ago. But, the gaps between happy and sad aren't as wide as you might expect.

A September 2009 survey of institutional investors revealed that 62% say "hedge fund returns have met expectations," compared to 53% in October 2008, when the market was consumed by all kinds of calamity. Only 11% responded this year that "hedge funds have exceeded expectations," which is up slightly from last year's 9%. Remember, though the market hit its worst late last year, the problem was building momentum for a while. Participants who do not feel that hedge funds have hit the mark shrank from 38% last year to 27% this year. And 66% are confident or very confident that their hedge fund investments will reach their objectives.

Continue reading Hedge fund investors happier now than a year ago

Hedge fund investors happier now than a year ago originally appeared on BloggingStocks on Fri, 16 Oct 2009 12:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alternative investmentsfinancial crisishedge fund collapsehedge fund managershedge fundsinstitutional investorsinstitutional shareholder servicespreqinresearchFri, 16 Oct 2009 12:40:00 EST<![CDATA[T. Rowe Price, Insight Venture Partners in Twitter deal]]>http://www.bloggingstocks.com/2009/09/25/t-rowe-price-insight-venture-partners-in-twitter-deal/http://www.bloggingstocks.com/2009/09/25/t-rowe-price-insight-venture-partners-in-twitter-deal/http://www.bloggingstocks.com/2009/09/25/t-rowe-price-insight-venture-partners-in-twitter-deal/#commentsFiled under:

Twitter is on the brink of nabbing another $100 million in financing, according to the New York Times. This would value the company at $1 billion, bringing back memories of outrageous valuations without corresponding revenue.

Insight Venture Partners and T. Rowe Price are said to be involved in the transaction, which would put them with Spark Capital and Institutional Venture Partners as investors in the popular microblogging site.

Continue reading T. Rowe Price, Insight Venture Partners in Twitter deal

T. Rowe Price, Insight Venture Partners in Twitter deal originally appeared on BloggingStocks on Fri, 25 Sep 2009 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>facebookinsight venture partnersinstitutional investorsinthenewsmicroblogmicrobloggingprivate equityspark capitalt rowe pricetwitterventure capitalFri, 25 Sep 2009 12:30:00 EST<![CDATA[Bank of America (BAC) rises on institutional buying]]>http://www.bloggingstocks.com/2009/08/13/bank-of-america-bac-rises-on-institutional-buying/http://www.bloggingstocks.com/2009/08/13/bank-of-america-bac-rises-on-institutional-buying/http://www.bloggingstocks.com/2009/08/13/bank-of-america-bac-rises-on-institutional-buying/#commentsFiled under: , , , ,

BAC logoBank of America (NYSE: BAC - option chain) shares are rising today on news that the hedge-fund firm Paulson & Co. bought 168 million shares of the stock, now worth $2.7 billion, during the second quarter, according to a regulatory filing. It was the firm's biggest purchase of the quarter, and investors appear to be reading the disclosure as a strong endorsement of the stock, especially since this firm was one of the few that saw the financial trouble coming. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BAC.

BAC opened this morning at $16.66. So far today the stock has hit a low of $16.23 and a high of $16.77. As of 11:45, BAC is trading at $16.73 up 80 cents (5.0%). The chart for BAC looks neutral and S&P gives BAC a neutral 3 STARS (out of 5) hold ranking.

Continue reading Bank of America (BAC) rises on institutional buying

Bank of America (BAC) rises on institutional buying originally appeared on BloggingStocks on Thu, 13 Aug 2009 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACBank of AmericaBankOfAmericahedge fundHedgeFundinstitutional investorsInstitutionalInvestorsinthenewsInvestors ObserverInvestorsObserveroptionsThu, 13 Aug 2009 12:30:00 EST<![CDATA[IPO market off to slowest start in a decade]]>http://www.bloggingstocks.com/2009/02/02/ipo-market-off-to-slowest-start-in-a-decade/http://www.bloggingstocks.com/2009/02/02/ipo-market-off-to-slowest-start-in-a-decade/http://www.bloggingstocks.com/2009/02/02/ipo-market-off-to-slowest-start-in-a-decade/#commentsFiled under: , ,

If you sensed as an investor that the initial public offering calendar was off to a really slow start in 2009, you were correct.

IPOS are off to their slowest start in 2009 in at least a decade, as the recession, investor skittishness and a challenging outlook for the stock market have decreased institutional investor demand for new stock offerings.

No company raised funds via an IPO in January in New York or London, and the stock market's 8% S&P 500 slide for the month didn't help the climate for new offerings, so says Stock Analyst C. Leonard Bauer.

Continue reading IPO market off to slowest start in a decade

IPO market off to slowest start in a decade originally appeared on BloggingStocks on Mon, 02 Feb 2009 10:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>institutional investorsinthenewsIPOIPOsMon, 02 Feb 2009 10:50:00 EST<![CDATA[Crude oil falls below $50 on U.S., global recession concerns]]>http://www.bloggingstocks.com/2008/11/20/crude-oil-falls-below-50-on-u-s-global-recession-concerns/http://www.bloggingstocks.com/2008/11/20/crude-oil-falls-below-50-on-u-s-global-recession-concerns/http://www.bloggingstocks.com/2008/11/20/crude-oil-falls-below-50-on-u-s-global-recession-concerns/#commentsFiled under: , , ,

In his 30 years studying economics first in China, then since 1989 in the United States, economist David H. Wang has seen it all.

Or at least he thought he had seen it all, he said.

Oil: a $100 plunge

"Oil is just about set to total a $100 fall in less than five months, which is unbelievable. It's hard to fathom," Wang said.

But, if oil, which dropped $3.41 to $49.91 early Thursday, falls $2.64 more, it will have recorded the mind-boggling $100 plunge Wang spoke about.

Oil hit a record high of $147.27 per barrel in July on what analysts then largely argued was an inability of global oil supply to keep up with oil demand growth in Asia, stemming from surging emerging market GDP growth.

However, what we now know, with the advantage of hindsight, Wang says, is that the truly ridiculous $147 price for oil this summer was fanned primarily by a liquidity bubble - - in the form of dollars and a low-interest yen deployed to commodities by institutional investors, among other oil market players. Oil demand played a role, Wang added, "but not to the degree that excess liquidity did, chasing a high-return asset [oil]. Likewise with the weak dollar."

Continue reading Crude oil falls below $50 on U.S., global recession concerns

Crude oil falls below $50 on U.S., global recession concerns originally appeared on BloggingStocks on Thu, 20 Nov 2008 13:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>gasoline pricesinstitutional investorsinthenewsoil bubbleoil pricesThu, 20 Nov 2008 13:18:00 EST<![CDATA[Suddenly, (nearly) every institutional investor in the world wants dollars]]>http://www.bloggingstocks.com/2008/10/29/suddenly-nearly-every-institutional-investor-in-the-world-wan/http://www.bloggingstocks.com/2008/10/29/suddenly-nearly-every-institutional-investor-in-the-world-wan/http://www.bloggingstocks.com/2008/10/29/suddenly-nearly-every-institutional-investor-in-the-world-wan/#commentsFiled under: , , ,

A year ago, few in the currency market would have predicted this stunning reversal in the flow of capital.

Despite being the nation that's likely to bear the largest economic and fiscal costs -- including a huge increase in its budget deficit and national debt -- from the global financial crisis, institutional investors are turning to the U.S. dollar in a flight-to-safety that economists say shows few signs of ending soon.

Investors flee to the dollar

That's right: you read correctly -- investors are turning to the dollar as a safe haven. Despite a decade of budget and trade deficits that drove the dollar to records lows. Despite an uncertain (at best) immediate economic outlook (the U.S. will be oh-so-fortunate to experience only a mild recession). Despite disagreement in the nation over the best way to pay for the many rescues / interventions needed to end the crisis. Despite the uncertainties presented by the upcoming U.S. Presidential / Congressional election. Despite its inadequate infrastructure and underdeveloped industrial base.

Despite all of the above, institutional investors abroad want: dollars. Money is flowing out of emerging markets and into the dollar -- so much that the major central banks may very well have to intervene repeatedly to support emerging market currencies to prevent further global financial system destabilization. Institutional investors are also flocking to Japan's yen, due to that country's relatively lower exposure to toxic assets.

Continue reading Suddenly, (nearly) every institutional investor in the world wants dollars

Suddenly, (nearly) every institutional investor in the world wants dollars originally appeared on BloggingStocks on Wed, 29 Oct 2008 18:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Brazilcredit marketscurrenciesdollarfeaturedFedinstitutional investorsMexicopesorealSingaporeSouth KoreaUkraineWed, 29 Oct 2008 18:20:00 EST<![CDATA[Investors still buy dollars despite problems]]>http://www.bloggingstocks.com/2008/10/20/investors-still-buy-dollars-despite-problems/http://www.bloggingstocks.com/2008/10/20/investors-still-buy-dollars-despite-problems/http://www.bloggingstocks.com/2008/10/20/investors-still-buy-dollars-despite-problems/#commentsFiled under: , ,

Is the dollar's status as the world's reserve currency coming to an end?

It could be, if present trends driven by corrective measures taken to stem the global financial crisis continue, in the view of one monetary official.

European Central Bank council member Ewald Nowotny believes a 'tri-polar' global reserve currency system is developing among Asia, Europe and the United States.

"What I see is a system where we have more centers of gravity," Nowotny said Monday in an interview with Austrian state broadcaster ORF-TV, Bloomberg News reported Monday. "I see for the future a tri-polar development, and I don't think that there will be fixed exchange rates between these poles."

The dollar has served as the world's reserve currency for more than 30 years. A reserve currency is one which financial institutions -- and nations, for that matter -- seek to own during times of financial crisis, stress, or uncertainty. The reserve currency attracts investors in a phenomenon called a 'flight to safety.'

The euro, the currency of the euro zone, this decade has challenged the dollar's reserve currency status, following its introduction into global financial markets in 1999. (Physical euro banknotes and coins began to circulate on January 1, 2002.) A series of U.S. fiscal policy and trade policy errors, among other factors, has caused the dollar to weaken against the euro from about 82 cents per euro in 2001 to the present $1.3317 per euro.

Continue reading Investors still buy dollars despite problems

Investors still buy dollars despite problems originally appeared on BloggingStocks on Mon, 20 Oct 2008 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank rescueBritish poundbudget deficitdollarECBeuroeuro zoneEuropeEuropean Central BankFedflight to safetygdpinstitutional investorsinterest ratesinthenewsinvestmentreserve currencytrade deficitU.S. economyyenMon, 20 Oct 2008 17:15:00 EST<![CDATA[Oil falls to $69 on U.S./global recession concerns ]]>http://www.bloggingstocks.com/2008/10/16/oil-falls-to-69-on-u-s-global-recession-concerns/http://www.bloggingstocks.com/2008/10/16/oil-falls-to-69-on-u-s-global-recession-concerns/http://www.bloggingstocks.com/2008/10/16/oil-falls-to-69-on-u-s-global-recession-concerns/#commentsFiled under: , , ,

August 2007. You remember the month.

Oil had zoomed through $70 on its way to almost $100 by year's end, and soon there were research reports arguing that oil would top $150 or even $200 in the year ahead, on surging global economic growth.

Few knew it then, but the month also marked the start of the subprime mortgage default problem -- first deemed isolated, then sector-wide in scope, and that now encompasses every corner of the globe, in the world's most serious financial crisis since the Great Depression.

Concern over the credit crunch and an accompanying slowdown in global economic growth sent oil prices below $70 Thursday for the first time since August 2007, with crude plunging $5.04 to $69.50 at mid-day. Oil has now fallen 53% since hitting an all-time high of $147.27 per barrel in July.

The other major energy commodities also continued their nearly month-long downtrend. Heating oil fell 11 cents to $2.07 per gallon, unleaded gasoline plunged 17 cents to $1.61 per gallon, and natural gas fell 6 cents to $6.65 per million BTUs.

Continue reading Oil falls to $69 on U.S./global recession concerns

Oil falls to $69 on U.S./global recession concerns originally appeared on BloggingStocks on Thu, 16 Oct 2008 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsgasoline pricesgdphedge fundsinstitutional investorsinthenewsoil pricesOPECRichard FelsonSaudi ArabiaspeculatorstradersU.S. economyThu, 16 Oct 2008 13:40:00 EST<![CDATA[AIG's woes telegraphed to U.S. Treasury, Fed need for bailout/rescue plan]]>http://www.bloggingstocks.com/2008/09/27/aigs-woes-telegraphed-to-u-s-treasury-fed-need-for-bailout-re/http://www.bloggingstocks.com/2008/09/27/aigs-woes-telegraphed-to-u-s-treasury-fed-need-for-bailout-re/http://www.bloggingstocks.com/2008/09/27/aigs-woes-telegraphed-to-u-s-treasury-fed-need-for-bailout-re/#commentsFiled under: , , ,

Some investors/readers -- and certainly casual observers of the stock market in towns small and large -- have been perplexed by the turn of events that has led to the current state of affairs in these United States: namely how and why does the U.S. government need to pass a $700 billion bailout/intervention bill to end a financial crisis in the U.S., possibly globally?

While numerous economic, regulatory, and behavioral factors created the conditions that formed the basis for the crisis, economist Richard Felson told BloggingStocks that the imminent failure of insurance giant American International Group (NYSE: AIG), in his view, "was the flashpoint at which both [U.S. Treasury Secretary Henry] Paulson and [U.S. Federal Reserve Chairman Ben] Bernanke realized that a case-by-case, reactive policy would not be adequate to check the building financial storm."

No AIG, massive exposure

Felson pointed out that at least a portion of hedge fund trades -- and the trades of other financial institutions -- are predicated on the assumption that mortgage-backed securities are good/have value, or, if not, that the insurance behind these securities is in force as a result of policies written by AIG. When it became clear that AIG did not have the assets/resources to pay claims, it was necessary for the U.S. government to take over AIG via a $85 billion loan from the U.S. Federal Reserve for warrants for a 79.9% stake in the company.

Continue reading AIG's woes telegraphed to U.S. Treasury, Fed need for bailout/rescue plan

AIG's woes telegraphed to U.S. Treasury, Fed need for bailout/rescue plan originally appeared on BloggingStocks on Sat, 27 Sep 2008 17:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGAmerican International Groupbailoutbailout billBernankebond marketcredit default swapscredit marketsfeaturedFedfinancial crisishedge fundsinstitutional investorsmortgage backed securitiesPaulsonU.S. CongressU.S. economyU.S. Federal ReserveU.S. TreasurySat, 27 Sep 2008 17:40:00 EST<![CDATA[Foreign nations, sovereign investors stay on sidelines, wait for bargains]]>http://www.bloggingstocks.com/2008/09/25/foreign-nations-sovereign-investors-stay-on-sidelines-wait-for/http://www.bloggingstocks.com/2008/09/25/foreign-nations-sovereign-investors-stay-on-sidelines-wait-for/http://www.bloggingstocks.com/2008/09/25/foreign-nations-sovereign-investors-stay-on-sidelines-wait-for/#commentsFiled under: , , , , , , ,

One might think that with the financial system in the world's largest economy in need of additional liquidity to avert a financial panic, foreign investors would be preparing similar fixes at home and/or standing at the ready to assist the United States, if needed.

Not quite.

Although central banks around the world have coordinated policies and cooperated fully, leaders of foreign governments balked at similar bailout plans, and many foreign sovereign investors also remain on the sidelines, The Washington Post reported Thursday.

While policy makers in Europe and Latin American agree that the global financial system is facing its greatest stress and threat since the period up to and after the 1929 stock market crash, they saw little need - - so far - - for major rescue packages in their own countries, The Post reported. Further, sovereign wealth funds, likewise, showed little interest in stepping up to the plate.

The world: well-capitalized spectators

Economist David H. Wang said Britain has cooperated fully, France has proposed a special G-8 summit to deal with the financial crisis, and Russia has acted to stabilize its stock and credit markets, but the rest-of-the-world is "watching the events as they unfold."

Wang said three factors are at work in the rest-of-the-world's cautious stance: national interest, a shift in the geopolitical balance of power, and posturing.

"Regrettably, but predictably, much of the world has turned inward and chosen to focus on its own domestic banks and institutions. There's also the belief, in nations like Brazil and in Middle Eastern economies, that they're more-insulated from the crisis, due to expanded non-U.S. trade relationships and the ability to undertake financial transactions and store value in other currencies, such as the euro," Wang said. "They also see the financial crisis in the context of a transition to a multi-polar financial world, from one dominated by the United States."

Continue reading Foreign nations, sovereign investors stay on sidelines, wait for bargains

Foreign nations, sovereign investors stay on sidelines, wait for bargains originally appeared on BloggingStocks on Thu, 25 Sep 2008 13:12:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutdeveloping worlddollarEUeuroEuropean Unionfinancial crisisFrancegdpglobalizationinstitutional investorsinthenewsLatin Americamortgage backed securitiessovereign wealth fundssovereignstradeU.S. economyU.S. TreasuryThu, 25 Sep 2008 13:12:00 EST<![CDATA[Dollar holding up (so far), despite credit, stock market woes]]>http://www.bloggingstocks.com/2008/09/16/dollar-holding-up-so-far-despite-credit-stock-market-woes/http://www.bloggingstocks.com/2008/09/16/dollar-holding-up-so-far-despite-credit-stock-market-woes/http://www.bloggingstocks.com/2008/09/16/dollar-holding-up-so-far-despite-credit-stock-market-woes/#commentsFiled under: , , ,

A flight to the dollar? Amid the United States' worst financial crisis in more than 20 years, perhaps since The Great Depression of the 1930s? It seems almost paradoxical, but that's the reality. So far. Stay tuned, an economist says.

The dollar has lost ground versus the world's other major currencies, amid this latest round of write-offs, bankruptcies and mortgage-asset-related stress on Wall Street, but the greenback has not plunged. In fact, the dollar is off its lows registered early Monday.

In early Tuesday trading, the dollar rose about a half-cent versus the euro to $1.4198, 1.5 cents versus the British pound to $1.7854, and a half-cent versus the Swiss franc to $1.1101. However, the dollar fell about 1 yen to 103.68 versus Japan's yen.

Themes: flight to quality, de-leveraging

Economist David H. Wang told BloggingStocks Tuesday the dollar's recent track displays two tendencies: a flight to quality and an unwinding of the carry trade -- i.e. a global de-leveraging.

"Although the U.S. Government and taxpayers are likely to spend more to deal with this financial crisis, and that implies more dollars in supply and inflation, institutional investors fear a decline or collapse in stock markets around the world, and are piling into the dollar," Wang said. "That is offsetting the dollar-weakening-effect of more U.S. Government spending. Essentially, it is flight to quality, so far."

Continue reading Dollar holding up (so far), despite credit, stock market woes

Dollar holding up (so far), despite credit, stock market woes originally appeared on BloggingStocks on Tue, 16 Sep 2008 10:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of EnglandBank of JapanBOEBritish poundcarry tradecredit crisiscurrenciesdeleveragingdollarECBeuroEuropean Central BankFedfinancial crisisinstitutional investorsinterest ratesinthenewsmonetary policySwiss francU.S. Federal ReserveU.S. TreasuryU.s.TreasuryyenTue, 16 Sep 2008 10:28:00 EST<![CDATA[Investor confidence in global growth continues to decline]]>http://www.bloggingstocks.com/2008/08/21/investor-confidence-in-global-growth-continues-to-decline/http://www.bloggingstocks.com/2008/08/21/investor-confidence-in-global-growth-continues-to-decline/http://www.bloggingstocks.com/2008/08/21/investor-confidence-in-global-growth-continues-to-decline/#commentsFiled under: , , , ,

Japan's yen resumed its rise against higher-interest currencies Thursday, suggesting that the prospect of additional credit market losses continues to lower investors' confidence in global growth and performing assets.

The yen rose as institutional investors continued to decrease their use of the carry trade.

In a carry trade, investors, especially institutional investors, borrow funds in a country with a low interest rate (or borrowing cost) and buy assets in a country where returns are higher. The investment can take many forms, including stocks, bonds, funds, or even the higher-interest currency itself.

The yen strengthened about 1.6 yen to 160.71 versus euro, about 3 yen to 201.95 versus the British pound, and about 1 yen to 108.20 versus the dollar.

Another big mortgage write-off ahead?

Currency trader Andrew Resnick told BloggingStocks Thursday sentiment is building in the foreign exchange and other markets that there will be "another, major housing-related write-off by a bank or series of banks in the U.S. or U.K, or possibly Fannie Mae (NYSE: FNM) or Freddie Mac (NYSE: FRE) problems."

Continue reading Investor confidence in global growth continues to decline

Investor confidence in global growth continues to decline originally appeared on BloggingStocks on Thu, 21 Aug 2008 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcarry tradecurrenciesdollareuroFannie MaefeaturedFNMforeign exchangeFREFreddie MacGeorgiainstitutional investorsoil pricesoil shockRussiayenThu, 21 Aug 2008 12:30:00 EST<![CDATA[Is inflation peaking in many parts of the world?]]>http://www.bloggingstocks.com/2008/08/18/is-inflation-peaking-in-many-parts-of-the-world/http://www.bloggingstocks.com/2008/08/18/is-inflation-peaking-in-many-parts-of-the-world/http://www.bloggingstocks.com/2008/08/18/is-inflation-peaking-in-many-parts-of-the-world/#commentsFiled under: , , ,

The reduction in global economic growth and growth expectations is leading to one benefit: a sharp decline in commodity prices, creating hope inflation may be peaking in many parts of the world, The Wall Street Journal reported Monday (subscription required).

Rice and palm oil, two commodities critical for the developing world, are both down about 40% since May, while the world's most vital commodity, crude oil, is down abut 23%, The Journal reported.

An end to surging commodity prices?

Economist Glen Langan told BloggingStocks Monday that while the commodity price-lower trend is still young, continued commodity price declines would be a welcomed sight, provided they don't drop too much.

"The pullback is welcome because many commodities had reached prohibitive levels, hindering commerce and really hurting the modest budgets of the poor/working poor in developing countries," Langan said. "However, too much of a price slide in commodities would be a sign of a pronounced global economic slowdown, which is something we don't want."

Further, Langan said that while regulators in various nations probe 'speculator' activity and alleged price manipulation in commodity markets, he argues that many of the price rises are consistent with historical price booms in other asset classes / sectors.

Continue reading Is inflation peaking in many parts of the world?

Is inflation peaking in many parts of the world? originally appeared on BloggingStocks on Mon, 18 Aug 2008 09:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chinacommodity pricesemerging marketsfood pricesgdpglobal growthglobalizationinflationinstitutional investorsinthenewsoil pricesspeculatorsMon, 18 Aug 2008 09:59:00 EST<![CDATA[Unwinding of carry trade seen as bearish signal for markets, economy]]>http://www.bloggingstocks.com/2008/08/16/unwinding-of-carry-trade-seen-as-bearish-signal-for-markets-eco/http://www.bloggingstocks.com/2008/08/16/unwinding-of-carry-trade-seen-as-bearish-signal-for-markets-eco/http://www.bloggingstocks.com/2008/08/16/unwinding-of-carry-trade-seen-as-bearish-signal-for-markets-eco/#commentsFiled under: ,

Some market signals are well-known and easily understood. Others are arcane and more-complex, but just as telling.

There's mounting evidence that the "carry trade" is ending, or that at least institutional investors are decreasing their use of it as an investment tactic.

In a carry trade, investors, especially institutional investors, borrow funds in a country with a low interest rate (or borrowing cost) and buy assets in a country where returns are higher. The investment can take many forms, including stocks, bonds, funds, or even the higher-interest currency itself.

Carry trade: A growth confidence indicator

Now, investors/readers may legitimately ask, Why is it important to know what's happening to the carry trade?

Economist Peter Dawson told BloggingStocks that it's important to monitor carry trade flows and data because it's one indicator of investor confidence in a market's ability to produce a return on equity, and by extension, in its economy to grow.

In other words, the carry trade abounds when investors are confident; it wanes when they're not, he said.

Continue reading Unwinding of carry trade seen as bearish signal for markets, economy

Unwinding of carry trade seen as bearish signal for markets, economy originally appeared on BloggingStocks on Sat, 16 Aug 2008 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Australian dollarBritish poundcarry tradecurrenciesdollarEUeuroeuro zoneEuropean Unionforeign exchangeforexFrancegdpGermanyglobal economyglobal growthhedge fundsinstitutional investorsinterest ratesNew Zealand dollarU.S. economyUnited KingdomyenSat, 16 Aug 2008 15:40:00 EST