Disparity in equities performance sows the seeds of financial meltdown

Posted on 12. Nov, 2014 by Jean Jacques Ohana in Weekly Focus

Equities long term trends have recently become very different. The gap between buoyant US and Japan, lackluster emerging and bearish Eurozone has never been so wide. As illustrated in figure 1, Japan, US and defensive equities in Europe (Switzerland) are well rated whereas euro zone equities and several key cyclical emerging markets are in sharp [...]

The adequate response to financial reflation: risk balanced allocation

Posted on 07. Nov, 2014 by Jean Jacques Ohana in Weekly Focus

We have advocated risk balanced allocation schemes on several instances since 2013 (here, here, here and there). Guess what? One of the best strategy in the highly volatile month of October (where for instance European stocks tumbled more than 10% intra month and eventually ended the month down 3%) was … a diversified risk balanced [...]