Voices and Trends in Wealth Management

We favour US equities to the emerging markets,said Kelvin Tay,Regional CIO for the Southern Asia Pacific at UBS Wealth Management.We like high yield corporate debt.We don't see a huge amount of risk.We're still positive on it at this stage,with an overweight on it.
Cyprus was a reminder that structural issues in Europe are far from over.We need to see that US growth is sustainable to the 3% GDP target that we have.We also need to see that China growth is achievable.
With strong US figures,the emerging markets will struggle for attention.Export numbers in Asia are sharply lower on sequestration in the US.
South Korean exports were worse than expected on the strong US dollar.Goldman Sachs says investors are buying Treasuries at fastest clip since 2009.
Global stocks have posted the best return of any investments for another quarter,but Stephen Wood,PhD of Russell Investments thinks it is unlikely that Q2 results will repeat the first quarter.There's a tug of war.This has been a very broad-based rally,but it also has a defensive character,too.Dr.Wood recommends a globally diversified,multi-asset portfolio constructed in a case-by-case,security-by-security way.
Carter Worth,Chief Market Technician at Oppenheimer,believes several stocks are fully priced,such as Johnson and Johnson and The Traveler's Companies.When does a stock become dangerous?We have a four-year bull market that has taken us to all-time highs.Markets don't normally go up 40-80%.Only four times has that happened.Go to cash,Mr.Worth advised.
Johnson and Johnson(JNJ),The Traveler's Companies,Inc(TRV)

Managing Director:Where You Want To Be

There's a transition in the mix of growth coming out of China,according to Lisa Shalett,Managing Director at Bank of America-Merrill Lynch.We think it's going from infrastructure/construction/building to a consumption/services mix.
Our thesis has been to go with the best of breed in Europe.That means Siemens,Daimler Benz,Astra Zeneca.Investor fatigue and the overhang of issues are really in the U.S. market.
Mario Draghi,President of the European Central Bank,can learn a lot from Federal Reserve Chairman Ben Bernanke.The risk in Europe now is a deflationary bust.You want to be in high quality,dividend-growing equities and investment grade corporates.You want to be in companies,not countries.Be in the emerging markets and high yield debt,Ms.Shalett counseled.
Lisa Shalett is Chief Investment Officer of Merrill Lynch Global Wealth Management and Head of Investment Management and Guidance.With over 17 years' experience in the investment industry,she has a BS in applied mathematics and economics from Brown University and an MBA from Harvard Business School.
Bank of America-Merrill Lynch(BAC),Siemens AG(SI),Daimler AG(DDAIF),Astra Zeneca(AZN)

Investment Problems and Prospects:Thoughts From Alliance Bernstein

Our point of view on the Volcker Rule is that it reduces liquidity all over the world,says Peter Kraus,Alliance Bernstein CEO.Investors want to trade securities at a price that's fair;at the end of the day,the Rule reduces liquidity.Our view reflects our clients' views.
The Volcker Rule,part of the Dodd-Frank financial reform legislation,takes effect in July.It bans proprietary trading by financial institutions.Big banks will be required by the Rule to maintain a staff of 50-60 people to comply with it.
That the Rule applies to foreign institutions as well has increased the criticism of it.Complaints have been rolling in from around the world.
The changes on Alliance Bernstein's business will not be particularly large,Mr.Kraus added,but it will crimp our clients' returns.It will hinder the sale of mutual funds.If you buy securities from a seller,you must sell at the end of each day,making it difficult to price the sale.The Rule is very complex from both the compliance and the structural point of view.
As for the overall investing environment,we certainly understand the flow of funds is still into fixed income.That makes it an interesting time to consider tilting back into equities,Mr.Kraus explained.
Mr.Kraus' colleague at AB,Vadim Zlotnikov,observes that some of the positives from the U.S. and China should be able to overcome the problems in Europe.To the extent Greece defaults,and there is no contagion,I don't think it would be a big enough event.
Mergers and acquisitions economically would make a lot of sense.The financial availability is improving;the deals are looking attractive.It could be April or mid-year before conditions deteriorate,in Mr.Zlotnikov's estimation.
Alliance Bernstein is a client-centered and research-driven asset management firm.Their global client base includes a broad range of individuals and institutions who are assisted by the firm's array of products and service organisations,which are tailored to their distinctive needs,from offices worldwide.
Alliancebernstein Holding,LP(AB)

Bryn Mawr Trust:Back To Market Basics

I think the market will come back to fundamentals,says Eric Thorne,Vice President at Bryn Mawr Trust.We're gonna be looking at a hotter economy than people expect.I think it's bonds that we should be worrying about right now.
What's really interesting is,the economy is likely to drive inflation and interest rates higher.The market's always setting these traps.We think investors should be looking for gains in general,and in the international stocks as well.The emerging markets will do even better than the U.S. during the next 12 months or so,Mr.Thorne predicted.
Bryn Mawr Trust is a regional financial institution with branches in the greater Philadelphia area.Founded in 1889,it concentrates on the creation,management,preservation and transferral of wealth for its clients,which range from individuals and families to businesses and organisations.It also offers online checking and savings accounts.
Bryn Mawr Trust(BMTC),Vanguard Emerging Markets Stock ETF(VWO)

Wealth Manager:What To Expect,For How Long

The economy's been picking up modestly,says Jason Pride,CFA,Director of Investment Strategy at Glenmeade Investment and Wealth Management.The political side of the equation in Europe is in complete contrast to that.It's gonna take a long time.Expect a bumpy period for an extended amount of time.
The reality is,we live in a very global environment.Our expectation is a moderate downside in Europe,not dragging the U.S. into the abyss.Our big theme is,don't hide in cash or Treasuries which are paying you nothing.
Glenmeade likes high quality high yield bonds and defensive,high quality stocks such as Colgate Palmolive and Yum Brands.These are companies linked to the emerging markets,Mr.Pride pointed out.
Glenmeade is a privately held firm that cites its strength and stability as an organization,delivering consistent and thoughtful advice in all markets,year after year.Glenmeade offers sophisticated strategies based on intellectual rigor for individuals,families,family offices and institutions.It has six offices in locations such as Philadelphia and Morristown,New Jersey.
Colgate Palmolive(CL),Yum Brands(YUM)

Merrill Lynch:What You Need To Do

There is a re-balancing coming in Europe and the U.S.,according to Lisa Shalett of Bank of America-Merrill Lynch Global Wealth&Investment Management.This is a volatility that is unprecedented since World War II.These are in many cases policy-driven.Demand and policy are interconnected.There's just as much uncertainty among consumers.
What everybody thinks is safe may be risky,and vice-versa,such as Treasuries/emerging market bonds.Embrace a more global perspective.This is about real diversification.You need to be in every geography,and not just BRICs.Consider Indonesia,Mexico,Turkey.Emerging markets bonds are safer,Ms.Shalett believes.
Merrill Lynch GWIM provides comprehensive services to affluent clients and institutions,from investment solutions to retirement,benefit plan,banking and philanthropic services.GWIM offers robust and dynamic product and solution platforms from Merrill Lynch offices worldwide.
Bank of America(BAC)