Falcon Perspectives - November 2010
Investment Compass gives an insight into the investment decisions of our specialists.
Investment Compass - November 2010
Investment Overview
In anticipation of more monetary easing in the US, equity markets worldwide rose strongly in the last couple of months. In order tostimulate its economy, the Fed will buy Treasuries in the amount of USD 600 billion by the middle of 2011. Such a technique is called quantitative easing or QE. Strong corporate earnings as well as better than expected labor market data contributed to the uptrend. Riskier asset classes should continue to do rather well, although the momentum in most equity markets is likely to abate. The S&P 500 Index has roughly risen 20% from its low of the year in early July.
Investment Overview
Van Eck Falcon Hard Assets Fund
The strong demand from the emerging markets, the ongoing recovery of the global economy and potential inflation pressure arising from ultra-expansive monetary policies around the world are strong supportive factors for commodities. Their relatively low correlation to other asset classes makes them a precious diversifier for international securities portfolios. The Van Eck Falcon Hard Assets Fund offers an efficient instrument to participate on these expected positive trends. The investment manager, Van Eck Associates Corporation in New York, has one of the largest and most experienced investment teams of the industry.