Spy has been contemplating, over several very large and very cold rum and Cokes, the rather famous quote by Albert Einstein, “If you think you understand quantum mechanics, I have clearly not taught it well enough.” Spy thinks this applies to humble students of financial markets too. If you think you understand how markets really work, you have probably not learned enough. For, what are we to make of markets at record highs while lunatics fire missiles across Japan? Hurricanes deliver rain in torrential volumes (at home and abroad) and the markets just shrug. Or perhaps, as the summer comes to a close and people return to their desks from Bali, Phuket and Da Nang, a dose of reality is about to set in? For what it is worth, Spy thinks taking a little profit off the table may do you and your clients no harm at all.
Spy has overheard news that JP Morgan AM has lost their head of investor communications in Hong Kong, Daniel Chui. Daniel has stepped down from his role at the American firm to join another American firm, T Rowe Price. Spy understands that Daniel’s new role is head of investment product communications for Asia-Pacific. JPM is searching for someone to replace him.
Spy has learned that Janus Henderson has lost the head of Southeast Asia marketing, Peggy Wu. Peggy, who has been with the firm for three years, has taken on the role of head of marketing at Aviva Investors in Singapore. She joins the firm in the next few weeks according to Spy’s sources. There is no news yet of Peggy’s replacement at Janus Henderson.
In another industry move picked up by Spy, Jonathan Quach, formerly head of sales at Friends Provident International, has joined global health insurer Bupa. He will continue to be based in Hong Kong and will no doubt be focusing on the IFA market.
Do you have an avid chart follower in your team? Someone who thinks they can read the tarot cards and give you investment signals reliably? Perhaps give them a nice cup of tea and ask them to take a peek at this set of charts put together by Pension Partners. In a series of biting observations, PP, highlight the folly of believing the charts exclusively. Spy will include just one salient example below, but suggests you look at the full article here.
Repeat after me: charts tell you what has happened, not what is going to happen.
Do you want to take some really juicy risk in a relatively illiquid market? Of course you do, thinks Spy. Well, ETF provider Direxion has just launched a fund which Spy thinks can only end in tears. Yes, I give you the Direxion Daily Emerging Markets Bond Bull 3X. That’s right, a triple leveraged bond fund that invests in emerging market debt that will surely find it very easy to sell its holdings when markets take a wobbly turn. What could possibly go wrong?
Apple, that giant corporate bond investor and sometime mobile telephone hardware producer, is about to unleash a new iPhone on the slavish masses. The glossy company from California has set the 12th of September for its launch date. Rumours abound that Apple is going to offer a $1,000 handset for the first time, giving young tech fashionistas a chance to part with even more of their hard earned money. It is hard to find an Apple bear these days and Spy thinks it is probably with good reason. Keep an eye on tech funds, they are almost certainly going to have another good run in the lead up to the launch. BlackRock’s GF World Technology fund has Apple as its number one holding and JP Morgan Asset Management’s US Technology Fund has Apple as its third biggest holding.
Spy gave a friendly, unsolicited suggestion to stock up on gold three weeks ago. Blushing, and with a certain smugness, Spy notes that gold has risen rather rapidly since. With one eye on North Korea and the other on the imminent fight in the US over the government debt ceiling, that advice may have some still have some way to run. Take a peek at Investec’s Global Gold Fund – it is up 14% year to date. Not bad for an out-of-favour sector.
If you are like Spy, you have seen dozens of fund presentations by some very smart people. The graphs are pretty…The ratios are golden…The message is utterly indecipherable. In life the smartest person doesn’t always win and neither does the best product. Spy’s maxim: “Make it easy and they will follow.”
The advertising flurry continues. Spy’s eagle eyed photographers and news hounds have spotted new campaigns this week.
First up, Allianz Global Investors in Singapore is playing with Jenga blocks and talking about Income. (Last time Spy played Jenga, he had too much beer and remembers that somehow everything fell down…)
Fidelity’s multi-asset campaign has jumped from billboards in Singapore to buses in Hong Kong:
BNP Paribas Asset Management has also been talking about multi-asset income, but with a European flavour:
Until next week…
