Tuesday, February 23, 2010

Asia Crucial To Portfolios

A combination of U.S. and international equities are recommended by Michael Yoshikami of YCMNET Advisors.You can use exchange-traded funds for exposure to individual countries.Go for tailwind industries such as services and tech-services that can spread across borders,such as IBM provides.Overall,Gross Domestic Product growth is gonna be less,so you need to be more selective about how you invest,Mr.Yoshikami cautioned.Watch out for stagflation,buffering your portfolio with commodities exposure.Invest in Asia-but not just China,he added. As financial regulation increases in the West,Asian institutions may capitalize on the situation.Strict reforms can stifle innovation and entrpreneurship.Hong Kong had more initial public offerings last year than New York.It stands to benefit even more as the West struggles with the aftermath of the financial crisis,in YCMNET's view.

Wednesday, February 17, 2010

Debriefing From Davos,Part 2:Jean-Claude Trichet

Participating in a dialogue at the end of the recent World Economic Forum in Davos,Switzerland,Jean-Claude Trichet,the outspoken president of the European Central Bank,said that at the outset of the financial crisis we had a financial sector that was extraordinarily fragile,but we also had imbalances that were accumulating.He fully agrees with U.S. officials that a strong dollar is in the interest of the U.S.,and also in the interest of Europe.In the very long run,he could imagine other solutions.
The future is not written,Mr.Trichet remarked.It depends on whether the Doha round on world trade is a success or not.We have an immense stake in whether Doha is a success.We need to have the most lucid public opinion that there is a superior interest in that,the European central banker feels.
Wearing a charcoal suit,green shirt and blue tie,the elder statesman of European finance noted that he is not being complacent in any respect.We have to work tirelessly for a system that is more resilient,to be sure;that our people's opinion is lucid and enlightened,Mr.Trichet spoke rapidly and candidly at the Davos forum.

Wednesday, February 10, 2010

Debriefing From Davos

Attending the recent World Economic Forum in Davos,Switzerland,Duncan Niederauer,CEO of NYSE/Euronext,shared some of what he learned there.He said he was taking away from Davos that companies' futures are improving.The worst is definitely behind us,but people are still saying are we doing the right things collectively and collaboratively.In the meetings I've been in,Mr.Niederauer recalled,I said it's key to get the financial leaders and the regulators together.Then you can put the foundations together for a healthy economic recovery.Separating banks' proprietary trading from customer activities is virtually impossible,in my opinion.
Mr.Niederauer,who wears an "autism speaks" lapel pin,sees robust initial public offerings at NYSE over the next six months.

Wednesday, February 3, 2010

Big Debt,High Cost

Greece is paying a high price for its national debt.Interest on one bond rose from 6.2 to 6.6%in three or four days.If unable to pay the interest,Greece would go into default.Nonetheless,Prime Minister George Papandreou denies Greece will have to be bailed out by the European Union.
In a TV address,Mr.Papandreou warned of massive budget cuts and higher taxes.There will be cuts in wages and spending in the public sector.Greece is under heavy EU pressure to defend the euro by reducing its deficit.It needs over 50 billion euros just to finance its deficit.One citizen remarked that people are angry and anxious about what will happen tomorrow.So are the governments of Spain,Portugal and Ireland,which face similar,if lesser,budgetary dilemmas.