But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Determining The Underlying Value Of Equity And Bond ETFs
An ETF’s underlying value is calculated using the NAV. This is the sum total of all the holdings in an ETF divided by the number of its shares outstanding.
Stock ETFs (Exchange Traded Funds) and bond ETFs actually have quite a few things in common. Both vehicles typically track an index, both trade on an equity exchange, and both…
The Fed holds eight meetings in a calendar year. It releases a SEP (Summary of Economic Projections) at four of the meetings. The recent meeting had a SEP.
The FOMC was positive about economic growth. It’s measured by real GDP. The Fed assumed moderate growth in the future.
From July 2009 to the end of that year, inflation and unemployment were rising. Since September 2011, inflation and unemployment have mainly been falling.
The Fed’s “patient” stance boosted US stocks. The S&P 500 gained 2.04% for the day. The Dow Jones Industrial Average gained 1.69%. Equities thought that the statement was supportive.
The Fed’s attitude towards the federal funds rate hasn’t changed. Patience is important because the rate increase needs to occur at the right time.
The US Federal Reserve works on a dual mandate of “maximum employment and price stability.” The target inflation rate is 2%—it hasn’t been close to that level since April 2012.
The announcement on the rate wasn’t a surprise. A rate change wasn’t expected. However, what did change was the language that the Fed used in its guidance.
Yields on the Greek 10-year bonds breached the 9% mark on December 11, climbing the most since May 2012.
The immediate impact of Greece’s political crisis is evident in the capital markets, which have become jittery since Antonis Samaras called for snap presidential elections.
Greece is the Eurozone’s most indebted country, with a 175.1% debt-to-GDP ratio. In the world, it’s second only to Japan, with a 227.2% debt-to-GDP ratio.
The continuance of the New Democracy party’s ruling status is largely dependent on the snap election results, scheduled to be announced on December 29.
Disagreement over new austerity measures with the troika led Greece’s Prime Minister Antonis Samaras to take a sudden and market-moving decision on December 9.
The subdued economic momentum in Greece has had a direct—and negative—impact on its ability to honor its foreign obligations, specifically its bailout loan.
On November 14, 2014, Greece’s economy finally registered some growth and emerged from recession. The economy expanded by 1.7% in Q314, compared to 3Q13.
China became Africa’s largest trading partner in 2009, surpassing the US.
The CDS market is already pricing in expectation of deterioration in the sovereign credit risk profile of South Africa.
Fitch is in line with Moody’s and one step above S&P’s credit rating on South Africa.
Investors commanding ~$2 trillion worth of funds track the WGBI, a powerful reason for South Africa’s government (EZA) to encourage an investment environment.