The Guardian (June 9)
The pandemic supply chain disruptions are “still rumbling on thanks to China’s drastic zero-Covid strategy.” This is prompting “a major rethink of how companies should organise themselves. Amid the buzzwords such as ‘reshoring’ and ‘diversification’ is the basic need to make western economies less reliant on China and other far-off manufacturing centres.”
Tags: China, Companies, Disruptions, Diversification, Drastic, Pandemic, Reshoring, Rethink, Supply chain, Zero-Covid strategy
Nordic Business Insider (November 17)
“Norway’s $1 trillion pension fund wants to ditch all oil and gas stocks.” The irony of the proposed move is that the Government Pension Fund of Norway has become the world’s largest sovereign wealth fund by investing Norway’s oil and gas revenue. The move is not being proposed as a bet against petroleum, but rather to mitigate risk through diversification. “The fund’s exposure to fossil fuel markets is currently double that of a standard global fund.”
Tags: Diversification, Fossil fuel markets, Gas, Norway, Oil, Pension fund, Risk, Sovereign wealth, Stocks
Euromoney (August Issue)
“Mexico’s strategy of diversifying its investor base is succeeding… following the sovereign’s multi-tranche samurai transaction which was priced on July 15 and included a 20-year tenor,” the first of any Latin American country. The highly oversubscribed placement also marked “the first emerging market sovereign to place a 20-year bond in Japan’s domestic market since 2008.”
Tags: 20-year tenor, Diversification, Emerging market, Investor base, Japan, Latin America, Mexico, Oversubscribed, Placement, Samurai bonds, Sovereign, Strategy
Wall Street Journal (November 18)
Burton G. Malkiel author of the investing classic A Random Walk Down Wall Street says traditional methods of investing are even more important today. Buying and holding beats skillful timing. Diversification is still essential. Those who invested according to these principles between 2000 and 2009 would have seen their portfolios nearly double. Those who didn’t would have seen their initial investment shrink. Mr. Malkiel urges investors to follow “time-tested techniques” so they come out ahead, “even during the toughest of times.”
