Economics

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Common Equity Reweighting / Rebalancing Strategy Mistake

Many investors who meet up with their bank advisor for the annual performance & strategy discussion make a costly mistake. They look at their positions and trim the gainers, either because the percentage of the position has passed a certain threshold or because they think the stock has run too far too fast. This strategy is one that will cost performance over the long term. Imagine you’re a seed investor…


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Lombard Odier Outlook 2014 Presentation

Today I participated in a presentation at the Bellevue, Berne (a beautiful venue) organsied by the first class Swiss Private Bank Lombard Odier. I won’t go into the actual outlook they gave but more into what participants views were. During one of the presentations participants (mostly HNWI, company or state & diplomatic representatives) were given the possibility to vote on different questions (with a credit card sized device each participant found…


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Swiss National Bank (SNB) Top 100 US Equity Holdings = 12.4bn USD (Top 2400 = 24bn USD, Worldwide holdings USD 89bn?)

In the middle of this post is a list of the top investments by size on the books of the Swiss National Bank according to SEC filings. If we assume the SNB is using the MSCI weightings as of Dec 30th, 2013 as a benchmark for their worldwide equity investments, 54% would be invested in the US. Further we could then assume that SNB holds USD 4bn in the UK…


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Increasing Equity/Capital at Swiss Banks and the Influence on the Economy

According to the theory in economics regarding the ways the central bank (in this case the SNB) can influence lending of commercial banks to the private sector one comes across the practice of changing the required reserve ratio (RRR). The higher the RRR, the less commercial banks will lend to the private sector. Countries that have been using the RRR as their main monetary policy tool recently are China, India…


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PC vs Tablet vs Network PC vs Smartphone Sales

Came across the numbers of past sales (2009-2012) and estimated sales (2013-2014) for the four segments PC, Tablet, Network PC and Smartphones. To get a clearer visual I compiled them in a graph (above). Looking at the absolute numbers for PC sales shows in the grand scheme of things, they are holding up. Network PC sales are still increasing, allbeit from low absolute levels (high single digit – to estimated…




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Importance of the Swiss Vote on 1:12 Salary Range Legislation

Looking at 2009 data published by the US government (IRS) on what the source of the top 400 wealthiest citizens income is, it’s a fair statement to say that salaries don’t account for a big slice of wealth generation: [table]Source, % Salaries/Wages, 8.6 Interest, 6.6 Dividends, 13 Partnerships and corporations, 19.9 Capital gains, 45.8 [/table] Judging by this there is a large likelihood that any legislation limiting salaries will just lead…