Putin’s Sell-Treasuries-for-BRICS Bonds Plan Has Limits – Bloomberg 09-26-14

Salient to Investors:

  • Richard Segal at Jefferies Intl said Russia’s reserves are too large relative to emerging-market dollar bonds so it will be difficult for it to stop buying US, European and Japanese bonds.
  • Luis Costa at Citigroup said Russia’s bond-diversification plan sounds like posturing as the size of its sovereign-wealth funds is a massive issue.
  • Ogeday Topcular at Ram Capital said sovereign wealth funds should be diversified as much as they could be to minimize the market and event risks. Topcular said Russia could invest in BRICS bonds but the motive should not only be to flee the countries who imposed sanctions.
  • Economists predict Russia will grow 0.3% in 2014 versus declining 7.8% in 2009. .
  • Oleg Kouzmin at Renaissance Capital does not see Russia’s investments in developed nations’ Eurobonds being replaced or significantly reduced by any other instruments in the foreseeable future.

Read the full article at http://www.bloomberg.com/news/2014-09-26/putin-s-sell-treasuries-for-brics-bond-plan-has-limits.html

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Did you miss this foreign stocks boom? – MarketWatch 07-31-2104

Salient to Investors:

  • Pundits calling for a huge decline in equities are either the absolutely certain types, who have stuck to their prediction for years, and the less media-savvy academics and heads of research at big investment firms who see a decline but after the market goes higher.
  • The last set of economic “reasons” for global markets to implode did not lead to that result.
  • Emerging bonds are back in vogue among big investors. Emerging country stock markets are pushing gains well into the double digits.
  • The US stock market could easily rise for a number of unknowable reasons, including late-arriving investors, Fed pronouncements, and a stronger economy.
  • Owning a diversified portfolio of global index funds benefits from all trends, all the time, regardless of underlying economies or investor sentiment, because a re-balancing strategy would have cashed out gains in up markets for investment in down markets.

Read the full article at http://www.marketwatch.com/story/did-you-miss-this-foreign-stocks-boom-2014-07-31

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