14639
Considering Alternatives
World Economy

Considering Alternatives

The search for reasonably priced equity and decent fixed income yields is taking investors towards alternatives, Investment Europe reported. Investors gated by hedge funds during the global financial crisis of the nineties may scoff at the idea of alternative investments becoming more attractive relative to traditional assets. However, for those struggling with record low interest rates and yet more quantitative easing – which in Europe threatens to significantly skew demand versus supply of risk free assets in secondary markets – the benefits are becoming increasingly attractive. German 10-year Bunds traded at a yield of 0.28% around the middle of March, while the US 10-year Treasury at 2.1% was well below a historical median estimated at 3.9%, according to one data set. Regarding equities, the S&P 500 P/E ratio was around 20x in mid-March, or some 13% higher than the multiple reported a year earlier.

 

Short URL : http://goo.gl/JyvU3y

You can also read ...

The rules say that EU countries should have budget deficits below 3% of GDP and public debt below 60% of GDP.
National budgets of six eurozone countries may break the...
Cambodia Sustains Strong Growth
Cambodia’s economy is forecast to grow 6.9% next year,...
UK Slashes Growth Projections
Britain slashed its official projections for economic growth...
All three sides can’t agree on a few key issues.  Top of the list: The manufacturing of cars.
No meaningful progress is being made in NAFTA trade talks...
AT&T-Time Warner Merger Case Politically Motivated
The US Justice Department’s lawsuit to block AT&T’s $85...
Mexico Boosts Minimum Wage
The bittersweet news for Mexico’s poorest workers: the...
Iraq to Resume War Reparations to Kuwait
The UN Security Council’s compensation agency has announced...
Gold Inches Up as Dollar Dips
Gold prices crept up on Wednesday amid a softer dollar, with...

Trending

Googleplus