The FSA Spy market buzz – 17 May 2024
Cash flow cows; Pictet AM gets cool, China’s stock market has bounced, The Dow reaches a new high, Tesla’s unsold cars and the EV bust, Barclays on equities, PM Lee and much more.
The Blackrock fund has a four-star Morningstar rating and an analyst rating of Silver. The Bluebay fund carries three-stars and a Bronze.
Morningstar’s star rating looks at historical risk-adjusted performance and the analyst rating is forward-looking analysis.
While Dash would not comment on whether he prefers one fund over the other, he pointed out that volatility is the major differentiating factor investors should look at. As mentioned earlier, the Bluebay fund is the more volatile of the two.
Dash said that the returns delivered by the Blackrock fund have been comparatively stable because of a more diversified approach. It would therefore appeal to more risk-averse investors aiming for steady returns.
By comparison, Bluebay’s fund invests in subordinated financial debt and derivatives, which makes the portfolio more credit-sensitive, complex and higher in gearing. The higher risk of the fund could lead to higher returns, compared to Blackrock’s product. It would therefore be the more suitable of the two for investors with a risk appetite seeking higher returns.
Cash flow cows; Pictet AM gets cool, China’s stock market has bounced, The Dow reaches a new high, Tesla’s unsold cars and the EV bust, Barclays on equities, PM Lee and much more.
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