Financial Times (February 22)
“The benchmark Nikkei 225 index finally broke through its “iron coffin lid” to surpass its long-standing record 1989 closing price of 38,915 points, which was set when 15 of the world’s largest companies by market cap were Japanese. “The Nikkei has risen 16.6 per cent since the start of the year, making it the world’s best-performing major index, as a falling yen lures foreign investors” and strengthens the performance of exporters.”
Tags: 1989, 38, 915 points, Benchmark, Best-performing, Falling yen, Foreign investors, Index, Japan, Market-cap, Nikkei 225, Performance, Record, Surpass
Wall Street Journal (March 25)
The aggregate M-Score index, which measures manipulation across corporate America “shows that the collective probability of fraud across major companies is the highest in over 40 years,” possibly foreshadowing economic downturn. “The theory is that their index might be catching distress in the stages when some companies are taking steps to try to cover it up…. The stock market might behave like the corporate sector is still humming along when in reality, its earnings are increasingly buoyed by tricks.”
Tags: Aggregate, Distress, Earnings, Economic downturn, Fraud, Highest, Index, M-Score, Major companies, Manipulation, Stock market
Barron’s (April 11)
“The stocks that have performed best over the past few years have seen a turn in fortune, while some of the worst performers are enjoying gains.” Of the 20 best-performing stocks in the Russell 1000 index between 2016 and 2021, “just three have seen gains in 2022” and on average the 20 stocks have “lost 22% so far this year.” At the other end of the spectrum, of the 20 worst-performers, “a majority—11—have gained this year.”
Tags: Best performers, Fortune, Gains, Index, Russell 1000, Stocks, Worst performers
Institutional Investor (April 3)
“Hedge funds are in danger of losing a battle with low-cost exchange-traded funds.” According to a recent study comparing hedge funds with similar ETFs, “The results were mostly bad news for hedge funds. Two of the largest ETFs in each sector outperformed their respective hedge fund index counterparts. Hedge funds did, however, provide a smoother ride for investors.”
Tags: Danger, ETFs, Hedge funds, Index, Investors, Losing battle, Results, Sector
Wall Street Journal (November 5)
“A wave of stock-picking firms are stepping up their fight against cheap exchange-traded and index funds with new offerings that dial back fees if they can’t beat the market.”
South China Morning Post (May 21)
“The direction is clear, and the pace is picking up. For investors around the world, the biggest mistake would be to ignore China’s markets and their enormous potential now.” As China’s capital markets continue opening up, “investors—be they European hedge funds, pension funds in Australia, sovereign wealth funds from Asia, or ordinary savers around the world—will need to look at what might be a once-in-a-generation opportunity.” The June 1 inclusion of 200 of the mainland’s large-cap companies into the MSCI alone might “prompt well over half a trillion US dollars to pour into Chinese stocks in the next five to 10 years, as institutional investors adjust index-linked portfolios to MSCI’s change.”
Tags: Capital, China, Direction, Hedge funds, Index, Institutional investors, Investors, Large-cap, Mainland, Markets, MSCI, Pension, Portfolios, Sovereign wealth, Stocks
Bloomberg (June 22)
“In the culmination of a long-running saga, MSCI Inc. yesterday announced that it would include some Chinese stocks in its widely used benchmark indexes, starting next year.” The decision beggars belief. “China is undeniably an increasingly important market…. But lowering the standards of what constitutes a market and obfuscating real problems just exposes unknowing foreign investors to elevated risks. If Chinese investors and even regulators are so wary of Chinese stocks, why encourage foreigners to enter the fray?”
Tags: Benchmark, China, Foreign investors, Index, MSCI, Problems, Regulators, Risks, Saga, Standards, Stocks
