China: A Crisis of Confidence?

Flag of China. Downtrend diagram on background.The tightening measures implemented by the Chinese authorities on margin financing, used by Chinese retail investors, may have curbed margin activity in recent weeks. Despite having fallen by more than a third from its peak levels, participation in domestic equity markets remains high. Investors, however, are struggling to grasp whether the Chinese government can contain market volatility. The massive portfolio outflows seen in recent weeks indicate that investors seem to be looking for any signs to exit the market.

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7 Things you Need to Know about Greece

EU flags in front of European Commission

1. Despite 61% of voters in the recent referendum rejecting the creditors terms, Greek Prime Minister Alexis Tsipras put the terms to a parliamentary vote. The deal was presented as a necessary evil, with Greece having no choice but to sign up. The reforms were passed by 229 votes to 64, with 6 representatives abstaining.

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Greece: No Widespread Panic After Painful Weeks

ThinkstockPhotos-465710688The Greek saga escalated over the weekend, with Premier Tsipras calling for a snap referendum. Investors around the world are asking, what’s next?

Next Sunday, the Greek people will technically be voting on the terms offered by the trio of institutions (European Commission, European Central Bank and the International Monetary Fund) – although it is unclear as of this writing exactly what will still be “on offer” come this weekend. However, we emphasize that the vote is ultimately about whether Greece is to remain in the common currency (yes) or to pursue “Grexit” (no). As such, at the end of the day, whether Greece remains in or out of the Eurozone would be in the hands of the Greeks themselves. We see a positive in this: a clear democratic mandate could help all stakeholders move forward without the political stalemates that have continually stalled the process.

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Asset Management: No Miracle Cure, But it Can Help

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In this month’s CIO Letter we offer our analysis of the broader implications of our world view (sub-par growth with multiple volatility fertilizers), focusing on the financial sector and investment policies. Continue reading

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Extracting Opportunities in European Equities – Focus on France

Seine in Paris with Eiffel towerFrench Equities – Core Country but Not Core Holding?

Given the increased interest in European Equities at this point – this is the second in a series of blogs focusing on different countries in the Eurozone and potential opportunities within each equity market.

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