Known knowns, and surprising surprises
Maybe it was just the team at Hedge Clippings that weren't expecting it, but we should know that surprises that are unexpected are more damaging than those that are. I'm sure there's a lack of logic in there somewhere because surprises that are expected can't be a surprise, as am sure some of our readers will pick up on.
What we are getting at is this: Greece wasn't really a surprise as many investors were fully aware of the problems for four or five years. So when the potential of Grexit finally came to the crunch, although there were some market wobbles, most investors had come to terms with reality.
Ditto, we expect, with interest rate rises in the US. Although we have yet to see an actual rise to occur, it would be difficult for any investor to say they weren't aware of what is going to happen, even if that doesn't mean to say there won't be a significant market reaction when the inevitable happens.
The China situation is a little different. Firstly there had been differing views on the Chinese economy, with some participants following the line that the Chinese economy would stay "stronger for longer", whilst others were talking about the inevitability of a slowdown. Secondly, until very recently Chinese economic data wasn't as transparent as many would have liked, so no one really knew.
What shouldn't take investors by surprise is the determination of the Chinese authorities to retain tight controls, be they on the economy, markets, the currency, or if it comes that any other aspect of life in China. Their attempts to control the markets by limiting investors' ability to sell stocks for example, were ham fisted at best, but did show they meant business, and in the short-term at least appear to have been reasonably successful.
What did take investors by surprise was their devaluation of the Yuan this week, not once, not twice, but three days in a row, and counting. And what markets hate most is either an absence of information, or being surprised by it when it occurs.
Specific results received this week include the following PERFORMANCE UPDATES:
FUND REVIEWS released this week: Supervised High Yield Fund
20 - 21 August 2015 - The 2nd Superannuation Fund Investment Operations Forum 2015 is a two day forum providing invaluable technological, regulatory compliant and best practice insights into improving back and middle office efficiency to drive member loyalty, bottom line profitability and a competitive edge
26 - 28 August 2015 - The 15th Annual Wraps, Platforms & Masterfunds Conference will provide solutions for succeeding in a distribution world of endless possibilities, showcasing strategies to help business achieve the biggest bite of market share, use innovation to overcome problems and support opportunities. Australian Fund Monitors is pleased to offer a discount of $300 to all investors and advisors using coupon code promoFM on registration.
17 September 2015 - The 14th Annual Hedge Fund Rock and Australian Hedge Fund Awards 2015 as the industry lets its hair down with some drinks, music and great videos. All proceeds go to Redkite helping childern with cancer and their families.
A couple of suggestions for And Now for Something Completely Different recieved this week were "interesting" to say the least, but probably would not have been appreciated by all our subscribers. Thank you anyway - I tried the cider, but am still looking for the watch.
As much as we don't like to replay old clips, this one is special, partly as it was the first one we ever used, and partly because it is still such great value. Enjoy!
On that note, have a good week-end.
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
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