Archive for the ‘ deVere ’ Category

Happy Friday to to deVere Group clients , we beats banks with 13% return in just 6 months

deVere Group beats banks with 13% return in just 6 months.

I am in the process of writing 4 emails to clients stating that they made 13% in 6 months ! They will have a very Good Friday , I can’t wait to get the responses .

Got to love success. Success breeds more success .

Tony Evans , Tokyo

Markets are BOOMING -looking like it will continue !

Markets looks like the first quarter was the start of a new BOOM in equity market . We have confidence growing , improving data , but more important is the prescription & attitude is turning positive .

Looking on the markets I agree we had a great 1st quarter , but I allways believe profit is only profits when you bank it ! Decide how much you happy with as a return and then sell .
If you don’t your greed feeling will make you hold for the perfect moment ,( which never exists !)

Reminds of a quote from Wall Street 2 from Gordon Gekko :

Bulls Make Money, Bears Make Money, Pigs Get Slaughtered

Strong Q1 to kick-start rest of 2013 – Strategist.

Strong Q1 to kick-start rest of 2013 – Strategist

Chief Equity Strategist Sam Stovall believes that the fast start year and the biggest Q1 gain in 14 years does not mean the party is about to end – in fact, the momentum is likely to continue.

As the calendar pages have now turned to April, investors remind themselves that the long-term track record for this month is positive.

Stovall assured that, “A strong first quarter has served as a running start for the rest of the year”. He argued that since the first quarter delivered positive returns, the odds of the next three quarters also delivering gains not only goes up, but so does the average total return.

In fact, history shows that since 1945, whenever the S&P 500 recorded a positive performance in the first quarter, the average performance for the three remaining quarters improved by an average 1.2, 1.1 and 0.4 percentage points, respectively. In addition, the rest of the year saw its average return rise to 8.9%.

However, at the opening of the second quarter on Monday, stocks slipped after disappointing US manufacturing activity weighed on the market.

The blue-chip Dow Jones Industrial Average index fell 5.69 points, whilst the broader Standard & Poor’s 500-stock Index shed 7.02 points and the tech-heavy Nasdaq Composite Index also lost 28.35 points.

Investors were concerned about whether Wall Street could extend the rally in the first quarter of the year when both the Dow and S&P 500 rose 11.3% and 10%, respectively.

Consequently, after a long holiday weekend the US stock market opened slightly lower, while trading at the Asian stock market was mixed and major European stock market remained closed on Easter Monday.

If you wish to review your funds in order to position your investments for the remaining of 2013, speak to a deVere Financial Adviser today.

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S&P Smashes through all time high

Confident High , Markets are BOOMING ! But is the market getting slightly ahead of itself ? GDP growth is slower than expected , unemployment still quiet high and personal/ public debt is still high .
My
Opinion on this is the markets are all driven by human emotion ( greed , fear ) at the moment everyone want to join the party ! I personally have started to take profit , profit is only profit if you have it in your pocket .

Lets see what the 2nd quarter has in stall for us

The below article was from

Tony Evans , Tokyo

S&P Smashes through all time high.

28 Mar, 2013

S&P Smashes through all time high

The S&P 500 smashed through a half-decade-old record as stocks continued their strong rally today.

The push to record territory came in mid-morning trading, as the S&P 500 broke past its previous record close of 1565.15 on Oct. 9, 2007.

The push to record territory came in mid-morning trading, as the S&P 500 broke past its previous record close of 1565.15 on Oct. 9, 2007.

The rally in stock prices has been fuelled by recent reports showing the U.S. economy is recovering, albeit at a sluggish pace. And investors have concluded that the financial markets aren’t immediately threatened by a debt crisis and recession in Europe or by fiscal dysfunction in Washington.

“Confidence is being restored, not just among investors but among businesses and consumers,” says Jason Ware, market strategist at Albion Financial Group in Salt Lake City, Utah. “They’re feeling better about the world, the economy and the market… 2008 and 2009 were pretty difficult, but we’ve come a long way.”

A major driver of the stock market in recent years has been multiple rounds of stimulus by the Federal Reserve and other central banks around the globe. The Fed has pumped billions into the economy, keeping interest rates near record lows. That in turn has made traditionally safe investments like bonds less attractive, pushing investors into riskier assets such as stocks.

If you wish to find out more, speak to a deVere Financial Adviser today.

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China’s growth could slow sharply by 2030 – Fed

Reading the below article and there’s one point that stuck with me , GDP is man made ! After living in Shanghai for a period I saw that a “great deal” of things are fake and it’s a given that the population is not correct as funding was based on population .I believe that 10/15% variable is conservative overstated .

But at the current rate China generates GDP growth in a week equivalent to Cyprus yearly GDP & 12.5 weeks GPP growth of Greece !!

China might be slowing but it’s still growing !

China's growth could slow sharply by 2030 – Fed.

China’s growth could slow sharply by 2030 – Fed

The US Federal Reserve believes that global economic trends might shift sharply by 2030, as China faces mounting headwinds – potentially forcing it to fade dramatically in the years ahead.

Declining productivity and an aging population could shrink the trend growth in China to around 6.5% by 2030, according to a new study. Moreover, if the current forces that are undermining economic activity combine in a worst-case scenario, the pace could fall to under 1%.

Notably, one of the Fed’s Senior Adviser wrote that GDP growth rate is the sum of the growth in employment and the growth in output per employee, and China faces challenges in both of these categories. Meanwhile, a US diplomatic cable recently released by Wikileaks has shown that Li Keqiang, China’s new premier, called the GDP figures ‘man-made’ and therefore unreliable as they underestimate inflation.

Chinese economic data is often questioned by sceptics who believe that government statisticians refine the numbers to make the Communist Party look like it’s bringing prosperity to its citizens.

Nonetheless, in the midst of the financial crisis, buoyant Chinese growth helped to support the global economy after recessions in the United States and Europe.

Economists commented that most investors would agree that the Chinese economy cannot maintain the extremely rapid growth rates it has seen over the past decades. The question is thus not whether the Chinese economy will slow but by when and by how much.

If you are looking for impartial and up-to-date professioanl financial advice about international investment funds, speak to a deVere Financial Adviser for a whole-of-market approach.

Global stocks remain flat on euro zone crisis

Global stocks remain flat on euro zone crisis.

Today European shares and the euro remained flat, losing early gains as investors fretted that Cyprus’s raid on bank deposits could become the template for future euro zone bailouts.

Banks in Cyprus remain closed following the country’s bailout agreement at the weekend, but comments from Jeroen Dijsselbloem, the new head of the Eurogroup of euro zone finance ministers, have stripped investors of the appetite for the kind of rebound that has followed other rescue deals.

The FTSE All-World is up 0.2% at 236.0, not far from the four-and-a-half-year high of 238.6 hit a couple of weeks ago.

Wall Street’s S&P 500 index is up 7 points to 1,559 at the opening bell, supported by data showing US house prices in January saw their biggest annual increase in six-and-a-half years.

On Monday the S&P traded just 1 point shy of the 1,565 level that was the previous closing high in 2007, before Jeroen Dijsselbloem triggered widespread “risk asset” selling by saying that the Cypriot rescue marked a watershed in how the region deals with failing banks.

But markets have now stabilised as traders absorb Mr Dijsselbloem’s attempts to clarify his initial comments, saying Cyprus was indeed a “specific case”, with “exceptional challenges”.

Re Blogging #nigeljgreen -UK should prepare for wealth exodus after next election

I am re blogging The below from Nigel Green site as its a great article on the effect of politics on the economy

Link to Nigel Green Blog with the below article

Wealthy Britons and UK-based foreigners are likely to flee Britain and take their funds with them after the next general election as high tax Britain is set to become even higher tax Britain.

Higher tax Britain? Really? Yes, it seems so.

A leading think tank has warned that tax hikes of up to £9bn, which equates to 2p on the basic rate of income tax, are likely to be imposed after the next election to plug the huge hole that will be left in the government’s finances following the spending cuts scheduled for 2015 that were announced in George Osborne budget.

The astute number crunchers at the Institute for Fiscal Studies have shown that the government will have little alternative but to borrow more or increase taxes to pay for the Chancellor’s budget. As this is after an election, a time when MPs can more afford to take unpopular measures, it is highly probable that the newgovernment would opt for the former – taxes would be hiked up.

As such, Wednesday’s budget represents a little bit of pain today for a whole lot more tomorrow.

A tax hike could be the tipping point for many high-net-worth and ultra-high-net-worth individuals, who are the most mobile in society due to their abundant resources.

As so-called ‘high tax Britain’ is set to become ‘even higher tax Britain’, I would fully expect there to be something of a wealth exodus from the UK as wealthyBrits and non-domiciled taxpayers in the UK seek to move themselves and assets to lower-tax jurisdictions in order to safeguard their funds.

Whilst proponents of tax hikes try to dismiss any notion of a global phenomenon of tax migration, both current examples and history prove just the opposite. It’s clear: when high-net-worth individuals are taxed to perceived excessive levels, they simply move – because they can. They are, in effect, taxed out.

Clearly, such capital flight would be detrimental to the UK. HM Revenue and Customs estimate that Britain’s top 275,000 earners contributed more than £41.4bn in tax over the last financial year, which equals 25.7 per cent of the UK’s total income tax bill. This is revenue the country simply cannot afford to lose.

If the UK is serious about boosting its coffers, it should be becoming more tax competitive, to attract high-net-worth individuals and job-creating firms, not less. Indeed, as David Cameron has previously said, the red-carpet should be rolled out for them.

Nigel Green

blog written 23rd March

Japanese Economy Gives Investors A Yen For Risk

A great article on iExpats on the JPY and how Abenomics is changing Japanese mentally and the world attitude to risk in Japan .

A very good read.

Japanese Economy Gives Investors A Yen For Risk
By Lisa Smith March 22, 2013

A number of different factors have joined together to encourage investors to ditch safe assets and head for riskier investments.

Many professional investors are heading towards Japanese equities because of the country’s weak yen which helps boost exports and increasing confidence among Japanese companies.

Others are ditching Australian bonds and reducing their gold holdings.
The downward slide of the UK pound is also making British equities more attractive, particularly in those firms which trade in dollars or export in volume.
To underline this move, one major player, Baring Multi Asset Fund, has increased its equity exposure in Japan from zero at the end of last year to a current standing of 4% – and they are looking to invest more.

Flagging economy

Fund manager Andrew Cole said that the Japanese government’s manipulating of the yen was helping to boost the flagging economy and, as a result, the recovery in Japanese equities was sustainable.

He added: “The measures taken by the Bank of Japan appear to be more credible than anything we have seen in the past and, as such, we believe Japanese equities are set to provide good opportunities for investors.”

Mr Cole says gold exposure has been reduced and will need an unorthodox fiscal intervention in the US for the price to keep rising.

The fund is also slashing the proportion of assets which are hedged in Sterling from 79% last autumn to 68% in the first quarter of this year.

They are also selling Australian bonds as government debt in safe havens comes under pressure and investors move to riskier profiles against what is seen as an expensive asset class.

The outlook of Barings is underlined by a Credit Suisse report which highlights two reasons as to why investors are adopting a riskier stance for their investments.

Stops and starts

The first, they say, is that economic growth in the US will pick up this year and lead the global recovery and, secondly, that the world’s central banks will raise interest rates this year as they leave their stimulus measures behind them.

However, they warn that the markets will fluctuate dependent on economic data being published but that the swings will be pauses rather than peaks and troughs and that the markets will continue their upturn.

Economists at Credit Suisse are predicting an up-coming slowdown in the world economy but this will not be followed by a sharp decline in growth and that the market’s mood of optimism could be undermined leading to short term falls.

The firm also points to the Japanese economy enjoying a strong rebound this year with better growth figures for both China and Europe.

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