Friday, 18 October 2013 20:00

Global Investment Update - October 2013

Hamish Douglass (CEO Magellan Financial Group) talks with Mark Draper (Adviser, GEM Capital) about his views on the current state of global financial markets.

In particular Hamish discusses:

1. How he does not believe that the US will default on their debt

2. Withdrawal of US stimulus in the form of Quant Easing and what investors should be watching in this process

3. How the Magellan Global Fund is positioned to generate returns for investors over the next 3 years

 

http://www.youtube.com/watch?v=MTI0JH-OmaQ&feature=c4-overview&list=UUF9H8uLExyIl1s4llFYleow

 

For more information on our views http://www.gemcapital.com.au

Published in Investment Advice
Thursday, 14 June 2012 10:56

Global Investment Update May/June 2012

Please click on the link below to view an informative video presentation from Hamish Douglass (Magellan Financial Group CEO) that discusses the uncertainties facing the global economy including Greece, Spain, Portugal, United States and China.

Spain Bailout

 Click here for Global Investment Update with Hamish Douglass

The key points from this update are as follows:

  • A spectacular Greek exit from the Euro is very unlikely irrespective of which party wins the June 17th 2012 election.  Greece deciding to leave the Euro now is best described as “suicide”.  If polls can be believed, 80% of Greeks wish to remain in the Euro.
  • Financial issues within Europe are well understood by the authorities including the European Central Bank (ECB) which has made substantial moves already to deal with liquidity in the European Banking system.  This sends a signal that the ECB will not idly sit and let the European financial system fail.
  • Spanish Banks require additional capital to restore their balance sheets following a property market bubble, possibly as high as EUR 100 billion.  The European Stability Mechanism (ESM) is to commence operating in July 2012 and has EUR 500 billion at its disposal and in Hamish’s view, if required could be used to recapitalise Spanish Banks.  The French are suggesting methods to increase the ESM financial firepower.
  • Low probability that the Spanish Banking system will cause a financial meltdown.
  • ECB is in a position to provide assistance to keep borrowing rates affordable for Spain to ensure that Spain does not become insolvent.
  • A gradual United States recovery is underway, and on a 3 year view, US housing will lead a sharp recovery in the US economy.
  • Chinese economy on track for a “soft landing” (meaning that Chinese economy unlikely to fall off a cliff) and is likely to slowdown gradually.
  • Volatility in financial markets is likely to be a feature of the landscape for months to come.
Published in Investment Advice