My Big Picture in 5 minutes

Wow, I nearly choke on my coffee. Sorry to spoil your mood if you are one of the big fans of Bitcoin. This article by Rakesh Sharma for Investopedia crossed my desk and may be of interest to some clients. Here is a part of the article: O human folly, thy name is Bitcoin! At least that might be the takeaway from hedge fund Elliott Management's latest letter to clients.  In a creative January missive that is equal parts critical about the hyperbole associated with cryptocurrencies and admiring of the manner in which they have captivated public imagination, Elliott Management described cryptocurrencies as “one of the most brilliant scams in history.” “FOMO (Fear of Missing Out) has solidly trumped WTHIT (What the Hell Is This??),” Elliot wrote to clients, as an explanation for the current crypto mania. According to the hedge fund, cryptocurrencies are the marketing power of inventors, financiers, and “others who love the idea of buying a black box (which is obviously emp

This article in Business Wire crossed my desk and may be of interest to some clients. Interestingly, I have been looking to incorporate ESG into our investment strategy with new partners. Here is a part of the article: Volatility finally roared back to abnormally tame markets, but most institutional investors were already bracing for impact; their efforts to diversify and build durable portfolios may now pay off, according to new survey findings released by Natixis Investment Managers. Seventy-eight percent of institutional investors expected stock market volatility to spike in 2018, and they are making opportunistic allocations to active management and alternative investments in order to help meet average long-term return assumptions of 7.2% this year. Natixis’ Center for Investor Insight surveyed 500 institutional investors around the world to gain insight about how they are balancing long-term objectives with short-term opportunities and pressures. 7 in 10 investors agre

This article by Mary Childs for Barron’s caught my attention and may be of interest to some clients. Here is a part of the article: Sentiment toward hedge funds has officially turned around. Data provider Preqin tracks the proportion of investors planning to increase or decrease their exposure to hedge funds. Since about December 2014, that metric has shown trouble: More clients were planning to flee the sector than join it. Now, that has shifted. New data show that 27% of investors plan to boost their allocation in 2018, the biggest proportion since December 2013. 46% plan to maintain what they have got. It turns out that 2016 was a particularly rough year for hedge funds, as their poor performance failed to convince investors they were worth the high fees they charge. Clients pulled a net $110 billion from the sector, Preqin data show. Here is the full ARTICLE .

Over the past couple of months I have presented at several private events for investors and urged them to think outside the mainstream. With each session triggering a flood of requests for additional meetings. Every traditional investor faces the same dilemma. Shoot for huge returns and you put way too much capital at risk. Choose safety and your cash is spread so thin you barely break even. Do you know the #1 thing on everyone’s mind in today’s challenging economic and market conditions especially with stock market volatility making a comeback recently? It is guaranteed income and steady capital growth during market upturns and downturns. The perfect investment model does exist. I am sending you this VIP invitation to join me for a private presentation on how to grab guaranteed income and steady capital growth at the same time. No obligation and lengthy sales pitch. I will also be giving you my latest views on global asset classes like stocks, bonds, foreign currencies, com

It is good to be back to work after a long Chinese New Year break. Over the weekend, I had a very interesting conservation with an old friend who is a brilliant fifty-something fund manager. He spoke to me on a number of things and was quite provocative. Sorry, we did not touch on Bitcoin. I picked a few interesting questions for this limited space out of our long conversation of about 2 hours. YH: We finally got a much needed “correction” of overbought market conditions.  Similar to a steadily boiling tea kettle, an overheating stock market must let off occasional steam. What do you think? Bob: We just always seem to forget that corrections happen. Stocks staged a recovery last week. The recovery has stalled near retracement objectives, which could be a potential turning point in the market. I feel that making a short-term bottom may be more of a struggle because of the ferocity and speed of the correction. It may take a few weeks or longer to work itself out. YH: On CN

Friday marks the start of the Lunar New Year, also known as Chinese New Year or Spring Festival. The holiday is also celebrated by millions of people around the world, including in Vietnam, South Korea and by people of Chinese decent all over the world including in the US. Chinese New Year traditions vary across Chinese communities, but most celebrations involve fireworks, family reunions and feasts, and paying respects to one’s ancestors. The New Year is also a chance to prepare for good fortune and luck in the coming year. Each year on the Chinese calendar is assigned an animal of the zodiac, which is repeated every 12 years. Last year was the Year of the Rooster and 2018 is the Year of the Dog. The years 1934, 1946, 1958, 1970, 1982, 1994, 2006 were also assigned Year of the Dog. Those born in these years are said to be loyal, honest, selfless, cautious, and prudent. But they are also meant to have poor communication skills, and can leave an impression of stubbornness.