The fall of Eike Batista
Eike Batista became the commodity baron of Brazil, amassing a significant fortune investing in gold, oil, oil services, iron ore, logistics, and power.
Brandon Snow's blog
With the continued strong equity performance and volatility and losses in the bond markets in recent months, we are finally starting to see a significant divergence in fund flows between the two asset classes:
Everyone is talking about the big news this week, Loblaws buying Shoppers, but the market is offering another opportunity to benefit from the deal.
Loblaws it currently trading at $48.50, up $1 from where it was prior to the announcement. There are only two possible outcomes: Either the deal goes through or it doesn't.
Markets: The first half of 2013 offered a much easier environment for equity investors than did the last few years. There was stable but not prolific growth in the U.S., the European credit situation calmed down and we had the added bonus of massive monetary stimulus out of Japan. The result was a less volatile, more widespread advance in the markets for most of the quarter, with all the excitement happening underneath the surface (defensive vs. offence and sector rotations).
Volatility has picked up across asset classes with the Federal Reserve’s announcement that it will begin reducing stimulus as the economy gains a foothold. While this is GOOD NEWS, as it is dependent on real economic recovery, the result has been bad news for asset prices, with deleveraging across the board.
When looking at the growth rate of a country or company, you must also investigate how it is being generated to determine if the growth is sustainable. When analyzing China, some concerns surface.
I am back in the office after a week on the road, so this is a good time for a quick portfolio update.
A common theme when talking to clients is: Where can we find returns going forward? With historically low interest rates working their way through bond markets, yields from governments to high yield are unattractive.