Investing and Global Finance News

Category Archives: International

Hedge Funds Around the World: A Glance

Hedge funds and the credibility investors give them have fluctuated a lot historically.  In the last ten years, since the 2008 financial crisis occurred.  But until then it was hedge funds that dominated the fiscal market, featuring top money managers, investment levels and high fees. Such characteristics were what kept the hedge funds elite.

Much changed with what happened in 2008.  According to Value Walk, before the 2008 crisis, approximately 43% of hedge fund assets came from institutional investors.  Six years later almost 2/3 of all hedge fund assets were from international capital. It was 201 that saw the biggest plummet for the hedge fund industry since the crisis began with net outflows of around $95 billion across the quarter.

So then a situation arrived whereby hedge funds started trying to get back investors by lowering fees with a structural change moving away from the two and twenty (2% of total assets and 20% of management gains/operation fees) model.

So things stabilized for a while.  But according to billionaire hedge fund manager Ray Dalio, that might not be the case in the long term.   He said:

“We have to sell a lot of Treasury bonds, and we as Americans will not be able to buy all those treasury bonds. The Federal Reserve will have to print more money to make up for the deficit, will have to monetize more, and that’ll cause a depreciation in the value of the dollar. “Two years out is when I’m worried about. It’ll be more of a dollar crisis than a debt crisis, and I think it’ll be more of a political and social crisis.” How a government responds to a debt crisis is more important than the nature of the crisis itself, Dalio writes.“I think there should be an emergency economic powers act” allowing the President, the Fed chairman, the speaker of the House and the Senate majority leader “to do the things that are necessary,” he concluded: The time to buy is when there’s blood in the street. I think we’re getting there.”

And more caution is needed for deregulation and its consequences which could result in an even deeper recession than 2008.  According to a CNBC report:

“It was precisely the pre-2008 deregulatory agenda, including the elimination of barriers between investment and commercial banking, that led to the development of complex financial instruments, such as credit default swaps and derivative markets. This encouraged excessive risk-taking by banks and mortgage lenders. By rolling back these regulations and dismantling portions of the Dodd-Frank Act, the Trump administration is removing the safety net and creating a perfect storm that could lead to a crisis even worse than 2008.”

 

18-Jährige Entwickelt App zur Erkennung Sauberen Wassers

Unternehmertun ist nicht nur für Erwachsene, da mehr und mehr Teenager den Arbeitsmarkt betreten mit innovativen Ideen und Lösungen zu einer breiten Palette an Problemen. Die 18-jährige Sharon Linn ist eine von Ihnen. Lin, Studentin im ersten Jahr am MIT, hat gerade den #BuiltByGirls Startup-Wettbewerb gewonnen dank einer App, die sie entwickelt hat, um Leuten… Continue Reading

China Wants US to Take Some Responsibility for WannaCry Cyber Attack

The recent global cyber-attack known as WannaCry infected over 300,000 computers around the world, with China among the hardest hit. As of Saturday, about 30,000 Chinese organizations were infected with a “ransomware” virus that takes advantage of weaknesses in Microsoft Corp systems. China lashed out against the United States in the wake of the damage,… Continue Reading

Alexium Takes the Prize

The premier business awards program in the United States announced its winners of the 15th annual prize. The Alexium International Group took a prize, which will be presented in New York in June. The CEO and executive director of Alexium, Nicholas Clark, was awarded the Silver Stevie Award for Executive of the Year in the… Continue Reading

Toshiba’s Nuclear Arm, Westinghouse, Filing Bankruptcy

Due to huge cost overruns in two projects in Georgia and South Carolina, Westinghouse, the US nuclear division of Toshiba, has filed for bankruptcy protection. The losses have negatively affected the Japanese parent company, Toshiba putting the future of the conglomerate at risk. Toshiba announced that the bankruptcy will not harm Westinghouse, UK, which has… Continue Reading

New Travel Ban Expected to Curtail Flow of Refugees Once Again

Since President Trump issued his first executive order banning refugees from certain countries from entering the United States, there has continued to be a flow of people into the country, since the ban was cancelled a federal judge. Nearly 2,500 refugees have entered the United States from banned countries since the day of the executive… Continue Reading