|Merrill Lynch Wealth Management and Eurasia Group Offer Investors Insight Into|
26/06/2012 01:10 (326 Day 03:02 minutes ago)
The FINANCIAL -- Merrill Lynch Wealth Management today announced “The Great Global Shift: Seeking Growth in a G-Zero World,” a new white paper and webcast series designed to help investors and advisors navigate an environment in which market volatility is normal and global conditions are changing rapidly.
According to this latest report, with the world’s three largest economies – the United States, China and Europe – unable or unwilling to take on the burdens of true global leadership, the world has become bereft of traditional economic and political power centers. It has become a G-Zero world and looks to remain that way for years to come, creating an ever-increasing need for investors to understand the geopolitical forces that can influence the markets.
Seeking Growth in a G-Zero World – A webcast featuring Shalett, Bremmer and Michael Harnett, chief global equity strategist for BofA Merrill Lynch Global Research.
Understanding “The Triple Threat” – For several years, historically low taxes and interest rates, combined with mild inflation, have provided a tailwind for both cash and fixed income investments. During this interview, Shalett discusses how shifts in the global economy could change this backdrop, making the environment potentially more favorable to other asset classes.
Understanding “Home Country Bias” – Merrill Lynch Wealth Management Behavioral Economist Michael Liersch shares his views on the tendency cautious investors have to invest in the country in which they reside, causing them to overlook long-term growth opportunities around the world.
These materials also suggest that investors work with their advisors and, based on their personal goals, consider these guidelines in the current environment:
Focus on companies even more than countries: Gain exposure to national economies that combine growth and resilience as their vital strategy, particularly over the long haul. In the immediate term, investors may also want to consider emphasizing multinational corporations that themselves have business exposure to a range of overseas markets.
Rebalance more frequently: Rebalancing once a year may no longer be enough.
Hedge currency risk: Gain an understanding of how international currency fluctuations can affect investment returns.
Be “triple threat” aware: Keep vigilant about how taxes, inflation and fees affect a portfolio.