Posts Tagged ‘risks’
SAN FRANCISCO (
MarketWatch ) — Mother was wrong: What you don’t know can hurt you.
Investors nowadays should realize this all too well, as headline-making events are forcing people to expect the unexpected. Unrest in the Middle East and North Africa and disaster in Japan have added to known worries like faltering economic growth and the [...]
Risks include:
Sovereign debt and associated imbalances
Unsustainable patterns of demand
During times of economic uncertainty, buying and holding U.S. dollar-denominated assets has long been the standard “flight to safety” many investors have relied upon for shelter from the storm. In recent years however, this trend is waning and investors are turning more and more to the yen and Swiss franc to [...]
The market rout of 2008 was tough on so-called target-date mutual funds. Designed to protect investors by decreasing their exposure to stocks and increasing their bond holdings as people get closer to retirement, the funds performed much worse than expected during the financial crisis.
Related Stories:
Mutual Fund Numbers You Can’t Count On
The Truth About Hedge Funds
Mixed [...]
NEW YORK (CNNMoney) — As we kick off 2011, investors are hoping to put some of the stomach churning market swings behind them. But there are still challenges that could cause some bumps in the ongoing road to recovery.
On the bright side, we’re a year-and-a-half out of the recession, and stocks are back to their [...]
Inflation remains contained
Interest rate differential could add to CAD upside; that is a particular concern given CAD strength
Monetary policy should remain highly accomodative
Sees 2011 growth of 2.3%, down from 3.0% in 2010
Talk of split between ECB and other major central banks exaggerated
ECB has not changed policy stance, has not indicated rates will change
FX volatility has adverse implications
Positive underlying economic momentum to growth but uncertainties remain; risks are on the downside.
A Eurozone default mechanism is not on the agenda
Irish central bank governor Honohan says “It is a good idea, laying out the facts for the major banks. I think it will go some way to removing exaggerated concerns about some particular risks.”
Best the authorities get their collective bottoms in gear then.
