Thu, Feb 20, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Comment: Expecting volatility in 2017? A case for diversifying

Friday, January 13, 2017

Matthias Knab, Opalesque:

Wells Fargo Asset Management writes on Harvest Exchange:

Optimism is surging. Consumer confidence recently hit levels not seen since 2001. Investor sentiment is also up, according to the fourth-quarter Wells Fargo/Gallup Investor and Retirement Optimism Index, which reached a nine-year high at +96, up from +79. The index also showed that 37% of respondents expect U.S. election results to have a major impact on their net worth.

Many market strategists say that when individuals are getting bullish, it's time to get bearish. I disagree. Optimism is not a reason to get pessimistic. There's often a difference between how people say they feel and how they act. For example, rising consumer confidence does not regularly result in future retail sales growth.

Confidence does a better job of reflecting what consumers have already done, rather than predicting what they will do. For investors, optimism can mean many things, but it doesn't automatically translate into market gains. For that, perhaps the best gauge is whether stock prices move upward "but again, this reflects what people have done.

So what might investors do in 2017, given their uptick in optimism? A good place to start is their outlook for how the market will move. While many investors say they're feeling optimistic, they......................

To view our full article Click here

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. PE/VC: Venture debt: Is it a loan? Is it equity? Is it an pportunity?, PE, VC investments in India hit all-time high in 2019[more]

    Venture debt: Is it a loan? Is it equity? Is it an pportunity? From Forbes: Venture Capital is usually the default option for fast-growth startups looking for a cash injection, thanks to our willingness to take risks in return for equity, and with no need to pay anything back - at least

  2. Other Voices: Evolution of shrinking hedge fund fees - what do investors and managers need to know?[more]

    By Don Steinbrugge, Founder and CEO, Agecroft Partners ( Hedge funds fees remain under extreme pressure across the industry. This strong trend is driven by declining return expectations from investors, inc

  3. COVID-19: Investors track ships, chase rumours to get edge on COVID-19 risks, Coronavirus risk puts the bull run on pause, China was wise to let markets stumble[more]

    Investors track ships, chase rumours to get edge on COVID-19 risks From Reuters: As investors crunch numbers to determine how the coronavirus will hit China's economy, hedge fund manager Nathaniel Polachek has tied much of his outlook to the fate of a ship anchored near Weihai, China.

  4. Bruce Berkowitz is back!, Coatue's new quant fund lost money in the fourth quarter[more]

    Bruce Berkowitz is back! From Institutional Investor: Famed value investor Bruce Berkowitz has hit hard times over the past decade, with big bets on losers like Eddie Lampert's Sears Holdings. In fact, over the past 10 years, his Fairholme Fund's annualized return is only 4.89 percent -

  5. Opalesque Exclusive: Optima A.M. bets on healthcare and biotech innovations with long/short strategy[more]

    B. G., Opalesque Geneva: Optima Asset Management has just launched the Optima Healthcare and Biotechnology strategy, which will be managed by five portfolio managers