Even some of the most cautious managers of hedge funds burned in 2008 because it kept their positions too long and anticipated time hanging market collapse. Now, amid the most recent data for the U.S. economy slowing down, at any price they want to avoid the same mistakes. Change that occurred in the investment portfolios in the second quarter, not simply be discarded as all risky assets - something that made the majority of smaller investors lately. Instead, hedge funds are directed to defensive strategies such as acquisitions of companies offering high dividends or operating in the utilities sector, shows study of Thomson Reuters, based on data from 30 of the largest fundamentally-oriented hedge funds. “Thinking of investors is not like a few years ago and quite risky assets are no longer in the game,” said Steve Goldman, chief market strategist at the company Weeden & Co, based in Greenwich, Connecticut. “The situation is desperate consumers, sustain the economy is disappointing and all are concerned about this,” he added. “Our portfolio is tailor so as to include the assets that we believe have the best balance between risk and return. Our exposure is significantly less than at the beginning of the year, “he wrote in a letter to investors Jeffrey Altman, who manages $ 5 billion in the Owl Creek Asset Management, one of the 30 funds included in the study.
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Need more arguments that Washington should no longer plans to promote the economy? Surely you do - the list is already long enough, but worth it to see the basic argument and Andy Siun, former chief economist for Morgan Stanley’s Asia region. He says that cost the U.S. simply support the economy of China and harming its own economy. “Money will expire just like water - incentives help most economies with lower costs, regardless of where they are intended,” said Siun cited by Gordon Chang in material Forbes. The argumentation of Siun is pretty simple, says Chang. He points out that manufacturers will move funds received as an incentive to developing countries, simply because there production costs are lower. Whether for General Electric, or Siemens. companies will be kept of where the money will spend most effectively. So Siun states, the West poured money into the global economy, they will find their way to developing countries, where either way liquidity is quite high. Thus, inflation will return through price rises of raw materials. Employed in developing economies do will inevitably require higher salaries. Then Fe will have to raise interest rates to deal with excess liquidity, a policy tightening likely will pull the trigger to pop the bubble of the assets, “explains Chang.
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The commodity prices registered a diverse movement, such as oil retreated and rose gold and copper price. This happened against the backdrop of stabilizing the dollar after dollar yesterday dropped to new low against the euro quarterly. The crude oil contracts with delivery in September lost 0.1 percent minimum to 82.47 dollars a barrel. Thus, the first decline reported quotations for the last five days. Today the U.S. Department of Energy publishes regular data on oil reserves in the country that showed surprise drop of 2.8 million barrels. Estimates were to reduce inventories by 1.2 million barrels. However, stocks of gasoline have increased by 700 thousand barrels, which is considered a negative signal from the markets. The reason for this are the expectations for a decline of 800 thousand barrels for summer travel and traditional American summer. Gold price with delivery in December reached a growth of 0.7 percent to 195.90 dollars an ounce. At the beginning of the session the situation looked as if the metal will be able to go over 1200 dollars per barrel, but it did not happen.
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The price of crude oil began the new week with an increase by quotations jumped over 79 dollars a barrel, reaching its highest level since mid last week. The reason for this was optimism on the stock market in Asia, where the Bulls prevail for six of last seven trading sessions. The growth in Asia is a fact because a series of strong statements, as currently 42% of companies within the index MSCI Asia Pacific, which have submitted quarterly reports from July 12 onwards, reported better results than expected. The new week started with the rise in the price of oil with delivery in September from 0.3 percent to 79.17 dollars a barrel. So the raw material continues to pick up movement, which brought in July grew by 4.4 per cent. Among the reasons for the price of oil is the retreat of the dollar against the euro. This morning the single currency failed to advance to 1,3080 EUR / USD, which limits the interest in investing in commodities.
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The price of U.S. light crude rose strongly by nearly 2 percent by the end of the session on Thursday and passed $ 78 a barrel after two consecutive days of decline. That helped the dollar depreciation against most major currencies and good data on the reduction of unemployment in Germany, sent Wall Street Journal. The U.S. dollar retreated by more than half a percent against the euro, yen, Swiss franc and Australian dollar yesterday. The euro rose above 1.31 dollars, which is the highest level for 11 weeks. Depreciation of the dollar makes the price of oil lower, expressed in other currencies. The emergence of successive tropical disturbance in the Atlantic also contributed to the surge in oil prices yesterday. During today’s e-commerce in Asia, however, took down the quotes after the data for the decline in industrial production and increased unemployment in Japan. The U.S. light crude for September delivery lost 0.3 percent to 78.12 dollars a barrel in today’s e-commerce. Oil futures rose 1.37 dollars or 1.8 percent, to 78.36 dollars per barrel at the end of yesterday’s session, as their price was moving in the range of 76.45 to 78.89 dollars a barrel.
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The crude oil prices stabilized at about 77 dollars a barrel yesterday after it was reported decline in quotations because unexpected rise in U.S. oil stocks. Regular data on the country’s energy ministry show that during the last week registered the biggest oil imports in the U.S. for the past almost four years. This led to the retreat of quotations by 0,7 percent to 76.99 dollars per barrel at the end of yesterday’s trading session in New York. This morning did lightest crude for delivery in September traded at 77.02 dollars a barrel. In the last week of U.S. oil inventories rose 7.31 million barrels goals and reached 360.8 million barrels. The increase was the biggest since March 19, statistics show. Preliminary expectations were completely opposite, as expected a decline of 1.73 million barrels. For the retreat of oil yesterday, and contributed data for a surprise drop in orders for durable goods by 1 percent. With a major contributor to this lack of demand for aircraft, which reflects directly on the mood of the oil market.
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The billionaire George Soros is in advanced talks to buy 4% of the capital stock exchange in Mumbai, which is prepared to pay 40 million dollars. These reports FT, citing his anonymous source familiar with the talks closely on the subject. Information of interest to share Soros Indian market appeared in March, then as it became clear that potential buyers is also philanthropic George Kaiser. According to FT George Soros is preparing to buy the share of Dubai Holding. If the price of $ 40 million proves to be a fact that means the stock exchange in Mumbai will be assessed a $ 1 billion. Dubai Holding, owned by the Emir of Dubai, wants some time to get rid of its stake and this is great opportunity to sell a reality. Buying a share of Mumbai exchange comes amid signs of a rift between her and the Singapore Exchange, which is one of the shareholders. Because Division has reached even to leave the representative of the Singapore Exchange board of directors, familiar state.
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The commodity prices - oil and precious metals, reported increases. This happened against a background of appreciation of the dollar, despite fears of deflation, which again began to gather force. The gold with delivery in August rose 0.8 percent to 191.70 dollars an ounce. So metal is peeled off from the bottom two months registered in 1182 dollars an ounce yesterday. Reason for the sale of gold in recent weeks was the restriction of development fears the debt crisis in Europe. The reason for this and give today’s successful placement of bonds from Spain, Greece and Ireland. The low price of the metal, however, began to attract investors, as financial markets still are not sufficiently stable. Today, the dollar rose against major currencies such as dollar index advanced by 0.3 percent to 82.75 points. Height account price and other precious metals. Silver rose 0.9 percent to 17.693 dollar an ounce, while palladium increased its price by 1.6 percent to 451.05 dollars an ounce. Quotations did platinum advanced by 0.3 per cent.
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The looming major financial sector reform in the U.S. overcame its penultimate obstacle, since a majority of senators in the U.S. Congress voted to suspend debate on a bill that would impose many restrictions on the activities of banks to reduce risks they take. The financial reform is needed because of the crisis, which hurt hardly the banking sector. The bad home loan comparison is showing that people are getting more aggressive in withdrawing fund from the bank, before getting them. Thus, the bill remains only to pass a final vote in the 100-member U.S. Senate, for its adoption are needed 51 votes, writes Financial Times. Voting is expected to take place today. Then U.S. President Barack Obama will be able to sign the law and launch of the biggest legislative change in the U.S. after the health reform of 2009. A year after the beginning of legislative efforts to reform the financial sector, they faced lobbying by the financial giants of Wall Street, who tried to oppose the reform, which may reduce their chances of winning. One of the most contested provisions in the Bill to reform the financial sector provides the U.S. banks are insured by the state and receive deposits, may lose the right to trade on its own account in financial instruments. The proposal was made by former Federal Reserve Chairman Paul Volkar. According to the chairman of the Committee on banking matters to the U.S. Senate Chris Dodd will allow these changes to reduce problems in the financial sector in the future. The finance Minister Timothy Gaytnar U.S. inventory forthcoming financial reform as the most massive than that in subsequent years of the Great Depression. The legislation was approved by the House of Representatives earlier this month.
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The U.S. shares fall at the last session the week after disappointing factory orders report for June, which fell by 1.4 percent compared to May - three times greater than that economists had expected. The report is another blow to the recovery of U.S. economy since the early signs were that it will be led by industry, reports CNBC. The market fluctuated in early trading after investors reflection data on employment in the U.S. in June, which showed a decline of 125 thousand jobs (the first of the year) with an expected reduction of 110 thousand. The leading Dow Jones index dropped by 0.2 percent in early trade to 9 713.80 points. S & P 500 was virtually unchanged at 1 027.25, and NASDAQ gave up 0.1 percent to 098.45 points 2. The decrease was not expected from the analyzers and this allowed the EUR currency to jump against the USD.
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