Posts Tagged With 'Money Managers'

U.S. government bonds are the least-favorite asset of money managers

Savings Accounts and Money Market Rates provided by 5 December 2011 U.S. treasuries are not the favorite assets of money managers, according to The Associated Press.

There are various reasons not to like the financial instruments. They provide very little return and many market experts anticipate that they will lose value when interest rates start to recover from historically low levels. There are various reasons not to invest in the securities, but demand for the financial instruments remains strong.

Many investors expect that prices will fall for these financial instruments, the media outlet reports. This prediction has not materialized yet, and investors who wagered that the prices for the debt instruments would fall did not generate the returns they were looking for.

It is entirely possible that there is currently a “debt bubble” surrounding the U.S. treasuries. While demand for the U.S. debt is strong and the federal government continues to run deficits, this desire for the debt of the world’s largest economy might not be sustainable.

If investors suddenly lose their appetite for U.S. treasuries and the country still wants to operate at a deficit, default could be triggered.
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Money managers see good environment for buyers in 2012

Savings Accounts and Money Market Rates provided by 8 December 2011 The feedback gathered at the recent 2012 Reuters Investment Outlook Summit indicated that many money managers see the year as one with various opportunities, Reuters reports.

Wide selloffs have left the stocks of many companies that are in a strong financial positions with low price-to-earnings ratios, according to the media outlet. Companies headquartered in the United States are currently sitting on $2 trillion in cash, which could set the stage for moves aimed at rewarding shareholders such as raising dividends, acquiring other companies and engaging in share buybacks.

Various market experts shared their input and predictions at the event. Shawn Kravetz, who works as the chief investment officer of Esplanade Capital, said that investors might have to lose their thirst for companies with fast profits and instead put their money in organizations that will generate slow, steady growth, the media outlet reports.

“Things aren’t generally getting worse and in many cases we’re getting a little bit better,” he told the media outlet.
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