Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

FRM predicts a period where good data could be bad for markets

Monday, September 09, 2013

Beverly Chandler, Opalesque London:

The latest "Early View" from FRM, Man Group’s $16.7bn fund of hedge funds and managed accounts business, finds that investors are heading into interesting times as the Federal Reserve starts to instigate tapering mechanisms, "the beginning of the end for the largest monetary stimulus ever seen."

FRM writes: "Europe remains beset by fiscal weaknesses of its peripheral nations and is only marginally out of recession. Last month, Greece was forced to concede the necessity of a third bailout package (albeit much smaller than the first two), and there is some concern that other states are postponing a full discussion of their needs until after the German federal election on 22 September."

The firm warns that for the emerging markets, the situation is arguably more serious. "In particular, countries such as India, Brazil, Turkey, and Indonesia are potentially beginning to show balance-of-payments issues that suggest an overdependence on foreign capital flows. These four countries alone represent over 8% of nominal global GDP, and have each seen their currencies depreciate versus the dollar by 20-40% over the past 2-3 years."

FRM also notes that last month, the S&P 500 returned -3.1% and the US 10yr yield widened by 20bps. Growth figures in the US, UK and Europe all exceeded expectations, and data on jobs, homes, manufacturing and consumer confidence were all broadly better......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo