In our final blog post of 2017, we argued that the 2018 investment «vintage» would likely be defined by history as marking a cyclical turning point within a much larger secular bull market for
global risk assets.
Last week's British vote to exit the European Union (EU) has spurred a flight to perceived safety and left many investors asking where to find opportunities amid indiscriminate selling of
global risk assets.
The story is similar elsewhere, leaving less room for the upside growth surprises that powered
global risk assets in 2017.
Sudden geopolitical shocks tend to hurt
global risk assets only briefly if the economic backdrop is sound, according to our analysis of asset performance following shocks since 1962.
These two forces, domestic investment concentration in one asset class and an incoming tide of liquidity from broader
global risk assets (think emerging markets, commodities and the metals) characterizes the moment.
Last week's British vote to exit the European Union (EU) has spurred a flight to perceived safety and left many investors asking where to find opportunities amid indiscriminate selling of
global risk assets.
The story is similar elsewhere, leaving less room for the upside growth surprises that powered
global risk assets in 2017.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of
global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of
global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the
risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan
assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the
risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
«I'm not going to be dismissive of the
risks, but I think markets have priced them in and if anything as we look at the fundamentals of stock markets around the world, the fundamentals of European equities right now are I think significantly better than they are for the United States,» said the managing partner of Triogem
Asset Management and
global investing expert on CNBC's «Fast Money.»
«The FSB's initial assessment is that crypto -
assets do not pose
risks to
global financial stability at this time,» board Chairman Mark Carney said in a letter on March 18.
In 2010, in the wake of the financial crisis, the Fed and its
global counterparts signed the so - called «Basel III» accords, under which all countries agreed to raise the minimum level of capital banks must hold to 8 % of their
risk - adjusted
assets.
As the traders battle for the best portfolio of the year, FMHR trader Jim Lebenthal takes
risk off the table, and Stephanie Link, TIAA
Global Asset Management, is focusing on quality.
Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the
risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the
risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the
risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the
risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the
risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the
risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the
risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix;
risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the
risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the
risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in
global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments;
risks resulting from the concentration of our business among few customers, including the
risk that customers may reduce or cancel orders or fail to honor purchase commitments; the
risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the
risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the
risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the
risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the
risk we may be required to record a significant charge to earnings if our goodwill or amortizable
assets become impaired;
risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products
risks related to our multi-year warranty periods for LED lighting products;
risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products;
risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
Although shareholders have yet to approve the deal, the banks would «re-pay shares at a pre-defined value in next few months, avoiding the
risk of uncertain evolution of huge claims by shareholders and clients,» Maria Paola Toschi,
global market strategist at JPMorgan
Asset Management, told CNBC on Tuesday via email.
Aside from Brexit, British banks faced «material»
risks from
global debt levels,
asset valuations and past misconduct.
«With the US labor market recovery gaining momentum, the hope for stronger
global growth in 2014 is motivating investors to take on
risk,» said Kathy Lien, managing director of FX Strategy at BK
Asset Management.
We upgrade our three 2018 investment themes, detail our
asset class preferences and highlight two key
risks to the
global expansio...
Taking on that kind of debt would be a
risk the company can ill afford amid headwinds in Canada as consumers carry record debt, said Stephen Groff, who helps run $ 6 billion as a portfolio manager at Cambridge
Global Asset Management, a unit of CI Investments Inc..
While
risks to the world outlook remain and have been reflected in sharp price movements in a range of
asset classes,
global growth is expected to trend upwards beginning in 2016.
At the same time, some two out of three
asset managers reckon a Chinese recession is the number one «tail
risk» to
global markets.
Pros Great
global asset coverage and availability (100 + markets) Very low fees and margin rates No proprietary trading, no
risk of default Good mobile offering and...
Her 2014 landmark negotiation with Exxon Mobil led to the company's first public report on
global warming and carbon
asset risk.
GLOBAL RISKS AND OPPORTUNITIES: The World View Hosted by Zurich Insurance Group Mary Callahan Erdoes, Chief Executive Officer, J.P. Morgan Asset Management Efrat Peled, Chairman and CEO, Arison Investments Susan Schwab, Former U.S. Trade Representative; Strategic Advisor, Mayer Brown; Professor, School of Public Policy, University of Maryland Isabelle Welton, Chief Human Resources Officer and Regional Chairman of Latin America, Zurich Insurance Group Moderator: Nina Easton, Washington Columnist; Senior Editor; Chair, MPW International and Co-chair, Global Forum, F
GLOBAL RISKS AND OPPORTUNITIES: The World View Hosted by Zurich Insurance Group Mary Callahan Erdoes, Chief Executive Officer, J.P. Morgan
Asset Management Efrat Peled, Chairman and CEO, Arison Investments Susan Schwab, Former U.S. Trade Representative; Strategic Advisor, Mayer Brown; Professor, School of Public Policy, University of Maryland Isabelle Welton, Chief Human Resources Officer and Regional Chairman of Latin America, Zurich Insurance Group Moderator: Nina Easton, Washington Columnist; Senior Editor; Chair, MPW International and Co-chair,
Global Forum, F
Global Forum, Fortune
Global Salon
Global Finance sat down with José Gerardo Morales, Chief Investment Officer of Mirae
Asset Global Investments (USA), to discuss challenges and opportunities in emerging markets, and the state of geopolitical
risk in 2015.
However, Limited Partners assume
risk when investing in this
asset class, especially when considering that today's volatile stock markets and the
global economic environment can influence exit options and exit values for their investments.
To build a diversified portfolio, an investor generally would select a mix of
global stocks and bonds based on his or her individual goals,
risk tolerance and investment timeline.2 The chart below highlights how those broad
asset classes have moved in different directions over the past 20 years.
The bottom line: Investors are being offered better returns for taking
risk in the low - return landscape, and a portfolio allocation to a broader, diversified mix of
assets — including alternatives,
global equities and emerging market (EM)
assets — can potentially help improve returns, in our view.
In a Mar. 18 letter to G20 central bankers and finance ministers, Carney gave a low -
risk assessment of cryptocurrencies on the basis that the new
asset class was small relative to the
global financial system.
To be sure,
global policy liquidity has played the lead role in pushing
asset prices to new highs, with strong correlations across both
risk - free and risky
assets.
We upgrade our three 2018 investment themes, detail our
asset class preferences and highlight two key
risks to the
global expansion and
risk assets.
Broadening confidence that the synchronized
global expansion — now juiced with U.S. fiscal stimulus — can persist has spurred an embrace of
risk assets globally.
We see two major
risks to the
global expansion and
risk assets: trade wars and a spike in real yields.
RBC
Global Asset Management Inc. (RBC GAM Inc.) today announced changes to the
risk ratings of three RBC funds...
2015.06.24 RBC
Global Asset Management Inc. announces
risk rating changes to three funds RBC
Global Asset Management Inc. (RBC GAM Inc.) today announced changes to the
risk ratings of three RBC funds...
The China Banking Regulatory Commission made the request to gain better control of potential systemic
risk as domestic companies move to acquire more
assets in
global markets, Reuters said.
The positives include a known
risk and reward, no commissions, innumerable strike prices and expiry dates, access to multiple
asset classes in
global markets and customizable investment amounts.
REWARDING
RISK By Udayan Gupta Edward Mathias is a member of the board of directors and a managing director and partner of the Carlyle Group, the
global alternative
asset management firm.
In their October 2017 paper entitled «Value Timing:
Risk and Return Across
Asset Classes», Fahiz Baba Yara, Martijn Boons and Andrea Tamoni examine the power of value spreads to predict returns for individual U.S. equities,
global stock indexes,
global government bonds, commodities and currencies.
«RBC GAM's investment approach is characterized by fundamental research and rigorous discipline, along with a focus on
risk management and portfolio construction, all within a team - oriented structure,» said Dan Chornous, chief investment officer, RBC
Global Asset Management Inc. «Habib and his team fit seamlessly with our approach, as demonstrated by their strong investment results and stability of returns, with notably solid performance in down markets.»
Upturn in Sentiment Buoys Some Emerging - Market
Risk Assets There has been a welcome stabilization in
global financial markets in recent weeks, which has been helped by indications from the European Central Bank (ECB) that it stood ready to expand its quantitative easing (QE) program, the possibility that the Bank of Japan (BOJ) might do the same, and a decision by the People's Bank of China (PBOC) to further cut interest rates and relax reserve requirements.
Investors in
risk assets seem to have renewed their focus on the fundamental strength of the United States and become less worried about the
global outlook.
Alessio leads GMAG's macro strategy focusing on business cycle dynamics,
global macro regimes, and their impact on
asset class
risks and returns.
In the International Monetary Fund's April 2018
Global Financial Stability Report, the organization found that «at present, crypto
assets do not appear to pose macrocritical financial stability
risks.»
Yesterday, Reuters reported that a recent letter from the Financial Stability Board's (FSB) chairman, Mark Carney, to the G20 finance ministers and central bankers echoed Buch's sentiments: «The FSB initial assessment is that crypto -
assets do not pose
risks to
global financial stability at this time.»
While the vote will likely lead to declines in
global shares and other
risk assets, we do see indiscriminate selling potentially paving the way for opportunities.
An aggressive Fed tightening cycle or
global risk - off scenario could pose a threat to the
asset class, though we see the
risk as low.
«Before Brexit, there was Grexit and the European sovereign debt crisis, Scotland's independence referendum, and the U.S. legislative gridlock over its debt ceiling in 2011, which threatened to, out of whole cloth, create a default in the
global benchmark
risk - free
asset,» Zezas adds.
Before Brexit, there was Grexit and the European sovereign debt crisis, Scotland's independence referendum, and the U.S. legislative gridlock over its debt ceiling in 2011, which threatened to, out of whole cloth, create a default in the
global benchmark
risk - free
asset.
Markets kicked off 2016 amid a flurry of perceived
global concerns, fueling a selloff in
risk assets and amplifying volatility.
When launched our
global asset management company for affluent and high net worth individuals, families and institutions that wanted to invest alongside us, we made sure our initial Form ADV disclosures contained discussions about some of the
risks.