Monthly Archives: August 2009

Does diversification still work?

August 18, 2009 – 08:51

Diversification: A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, which are unlikely to all move in the same way. Diversification: A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, which are unlikely to all move in the same way. Diversifying drivers of return Diversification is [...]

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Investing in a world of government debt

August 18, 2009 – 08:28

Governments around the world are driving recovery with aggressive economic policies, creating both opportunities and threats for investment markets. For this Point of View, AXA’s National Development Manager – Investments Carmel McKenzie put some of the key questions raised by advisers to AXA’s Chief Investment Officer Mark Dutton. Carmel: In your view, are the looming [...]

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De-leveraging has set in

August 18, 2009 – 07:57

What this means for the economy and financial markets This is no ordinary downturn and recovery is unlikely to be quick. Too much debt is at the heart of the problem and the process of de-leveraging (shifting from too much borrowing, to debt reduction) will largely determine the depth and duration of the global recession. [...]

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Opportunities and threats in distortions

August 17, 2009 – 11:33

“Stability is unstable” Hyman Minsky, US Economist This insight captures the warning that when unusually calm conditions continue for a long time, distortions are likely to arise, which must ultimately correct. Between 2003 and 2007, stable and positive conditions set up the distortions which triggered many of the challenges we now face. These included over-optimism, [...]

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