In this issue of Investorama, we focus on the question if the positive development of the Equity markets in Europe and Japan is the sign of a new market cycle. Meanwhile, in the Interview we take a look at the role hedge funds can play in a portfolio. Even the "the number" has to do with hedge funds.
The equity markets in Europe and Japan, as well as in a number of emerging markets such as China, posted a very positive performance this year after the ranking list had been clearly dominated by the stock exchange in the United States over the past few years. It is a truism that markets move in cycles and that the ideal moment to invest is at the beginning of an upturn. Another principle in the investor ABC recommends diversifying investments. Nevertheless, human weaknesses such as apathy and the herd instinct often cause investors to concentrate their investments in a single segment that has notched up a very positive performance in the recent past and to ignore other more promising opportunities. How do US equities fit into this?
In the past, hedge funds were often dismissed as being too complex. Thanks to increasing transparency and more attractive fee structures, however, hedge funds are enjoying a gain in popularity in the current low-interest-rate environment. In the interview Roger Hilty, Portfolio Manager at LGT Capital Partners, explains why Managed Futures are particularly attractive at the moment and why private investors should consider an allocation.
Our money tale discloeses the connection between a harvard sociologist and hedge funds. But what does 2 491 000 000 000 have to do with it? Read "The number" to find out more.
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