Resource Search

Too much leverage, poor risk control and blindness to the bubble in the real estate industry have been cited as key factors in the financial crisis. Greycourt, however, points to another potential cause: A collapse of ethical behavior across the financial industry, particularly the loss of any sense of fiduciary responsibility to customers. This white paper explores the role of lost ethics in the current crisis and proposes reforms for the industry.

Global investment in physical infrastructure has been a prime driver of growth in emerging markets, but sustained growth also requires investment in an intangible infrastructure that many emerging nations lack. Credit Suisse identifies five pillars of intangible infrastructure (education, health care, development of the financial system, technological investment and the penetration of business services) and singles out companies with the greatest growth potential within these pillars.

It will take time to get the world economy back on track and the process will be difficult, Barclays Wealth says in its annual outlook. Researchers for Barclays summarize their current macroeconomic views and the implications for asset classes and investment in 2009. They also present their asset allocation recommendations and more specific investment themes, both for the short and medium terms.

U.S. farmland continued to increase in value in the third quarter of 2008, although at a slower rate of 2 percent, compared with a 14 percent uptick in the previous quarter, according to this report from the Federal Reserve Bank of Chicago. At the same time, agricultural credit conditions improved over a year earlier. Looking forward, economists expect farmland to remain in demand by both farmers and investors, but at a lower level.

Life insurance policyholders are understandably concerned by the collapse of AIG and the ongoing crisis in the financial services industry, but insurance company analysts do not see an insolvency risk among other providers. Indeed, they express confidence in several safeguards designed to protect the interests of policyholders, says this new white paper from Nease, Lagana, Eden & Culley Inc.

An unprecedented low in the purchasing manager index suggests China faces an imminent negative growth shock. New orders and new export orders fell sharply; import orders look very poor; and input prices are dropping. The PMI tends to be volatile, a Credit Suisse report notes, but it has a decent track record of predicting the direction of the economy.

A concise review of past and present hedge fund environments can potentially provide an important context for understanding what the future may hold for hedge fund investing and what the resulting implications could be for qualified investors.

The United Nations' 2008 World Investment Report states that developing and transition economies attracted nearly $600 million in foreign investment in 2007, a 25 percent increase from the previous year. Much of that money came from trans-national corporations, but much more is needed, particularly to shore up the infrastructure of these nations. The 411-page report analyzes trends in corporate giving as well as the roles of both the giver and the developing country.

The downturn in the global real estate market ended over-performance and returned property values to more realistic, historic values. But lower prices can be a benefit for investors who had limited real estate holdings or were priced out of the market previously. This report from State Street Global Advisers explores potential opportunities in the current market.

Investors who are looking to reduce risk and increase investment returns may want to consider owning farmland, according to this article from AgraShares. Across the past 40 years, owning and leasing a farm produced an average annual rate of return of 11 percent, comparable to the rate of return from stocks.