To earn returns in the regulated energy sector, investors will need to be aware of and understand the following items: supply and demand dynamics, interactions across the various commodity supply chains, the overall macro environment and impact on specific names and subsectors, regulatory and political environment, and operational and safety issues.
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Rockefeller Financial Managing Director Jimmy Chang looks at Greece's possible exit from the euro, the cooling of global markets and Facebook's disappointing IPO.
When it comes to families, reputation management involves much more than preparing for or responding to critical incidents. It is connected to the family’s values, history, and future aspirations. This article provides an overview of best practices families can institute to foster and safeguard their good name.
Interest rates continue to bump along near historical lows. Given the asymmetric risk/reward of holding bonds with extraordinarily low yields, some investors have been reconsidering their holdings. Investors worried about rising interest rates have several options (among them, shortening duration and using derivatives), but none are without opportunity costs and implementation challenges.
We anticipate a period of market consolidation leading up to, and including, the summer and would not be surprised to see more elevated levels of volatility. However, over the longer term we see risk assets continuing to be supported by valuations and abundant liquidity, although tail risks to growth from global fiscal policy remain.
Americans are likely to see tax simplification and a more efficient process in 2013. Under tax simplification, there will likely be fewer deductions, but tax rates will be lower. However, the actual outcome of various tax initiatives will be very unpredictable regardless of what the candidates say during the campaign.
Artwork or other collectibles often comprise a special part of a family's assets. In addition to holding deep personal meaning, they may have significant financial value. While these items should be viewed just like other assets such as real estate or financial investments, there are some unique factors and complexities to consider.
Deutsche Bank is still optimistic on stocks, especially those with a history of growing dividends. In fact, the average corporate dividend yield is actually higher than the yield on 10-year U.S. Treasuries, and that alone should enable equities to outperform bonds. Specifically, they are skewing their portfolios toward the U.S. and emerging markets, while underweighting Europe due to the serious issues it faces.
Returning risk appetite in combination with currently oversold equity and commodity markets could end up bringing a strong relief rally. This rather positive but still realistic scenario should put long short equity and emerging market funds (directional strategies) in the best position to outperform other strategies. Managed futures should perform the worst under this assumption, mainly because the deterioration in technical indicators recently forced mid- to long-term trend followers in particular to open net-short positions.
It appears that uncertainty and volatility are going to be riding with us for a while. There are big risks, to be sure, but big opportunities as well, and the key is to have capital available to capture those opportunities, which means that you have to avoid meaningful losses during the really rough times. It will take prudence and commitment to emerge from this journey safely and securely.