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Bloomberg Markets Magazine

Bloomberg Markets Magazine March 2016

Bloomberg Markets is the best kept secret in the financial industry. Get Bloomberg Markets Magazine digital subscription today and learn what many Hedge Fund and Portfolio Managers already know. Bloomberg Markets is the must have guide to what's happening now, and what will happen in global finance.

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United States
Bloomberg Finance LP
Back issues only

in this issue

1 min
the journal of global finance

Welcome to the new Bloomberg Markets. When this magazine was first published in July 1992, the Standard & Poor’s 500-stock index was in the low 400s, Apple sold PowerBooks, and 8 of the world’s 10 biggest banks were Japanese. Clearly a few things have changed. And you’ll no doubt notice that a few things about Bloomberg Markets have changed, too, beginning with a more refined look and feel. As a magazine catering to the financial professionals who steer the global economy, we seek to be as essential to your work as the Bloomberg terminal itself. We’d like to take a moment to reintroduce you to the publication. First, the cover: Jamie Dimon, who recently clocked his 10th year as chief executive officer of JPMorgan Chase. To mark the occasion, we asked him to…

2 min
“we are in a period of great uncertainty on almost every front.”

Doris Meister PRESIDENT FOR U.S. MARKETS, TRI-STATE AT BANK OF NEW YORK MELLON WHAT MATTERS MOST TO PEOPLE IN MARKETS AS THEY LOOK AHEAD “My favorite idea is to be long on the U.S. dollar, which remains in a bullish supercycle. The U.S. is tightening as Europe, Japan, and China continue to ease, fueling the dollar’s strength. This will remain a headwind to asset prices, so investors will want to overweight their cash allocation.” Michael O’Rourke CHIEF MARKET STRATEGIST AT JONESTRADING“Leveraged loans are an out-of-favor asset class, yet they have some upside, and they should afford some protection in a very tricky market.” Peter Tchir HEAD OF MACRO STRATEGY AT BREAN CAPITAL“We need less focus on the yuan and more focus on Shibor, the domestic interbank interest rate in China. From the point…

1 min
counting cranes

CONSTRUCTION IN MUMBAI suggests an economy primed to boom. Rising on the city’s skyline are supertall buildings such as the one topped with three cranes in the distance. When completed next year, it will be India’s secondtallest, at about 361 meters (1,185 feet). The future residences in the foreground will eventually share a view of the Arabian Sea. Amid the building boom, India still faces headwinds—including one kicked up by last year’s monsoon season, the driest in years. In a country where agriculture still accounts for half of employment, the lack of rain in 2015 may crimp household spending this year. Looking further into the future, though, India will be riding a major tailwind: demographics. Unlike fellow Asian powers China and Japan, India has just entered a compelling sweet spot…

4 min
for large economies, aging populations reveal uncomfortable truths

ECONOMISTS HAVE A RULE of thumb for evaluating an emerging market: Look out the window during the cab ride from the airport to the hotel, and if you see cranes outnumbering skyscrapers on the skyline, the economy is set to boom. Now there’s a corollary for countries around the world: When you begin to notice a disproportionate number of gray-haired professionals, the economy may be set to falter. The right demographic mix can supercharge economic growth. There’s a sweet spot in which the majority of a population is of workforce age, contributing to the economy through both consumption and production. As a country’s population ages, though, and retirees aren’t fully replaced by younger workers, the proportion of people who consume more than they produce begins to rise. That trend can feed…

4 min
the investor group that fought ge— and won

BILL PARRY STARTED getting calls from his clients immediately—and they were furious. At 4 p.m. on Dec. 1, General Electric issued a statement saying it was pulling about $5 billion in preferred stock from the market and exchanging it for shares with new terms. Within hours, the securities had plummeted, erasing about $500 million in market value and enraging investors. “The fact that it was a mandatory exchange was shocking,” says Parry, 55, managing director of capital markets at investment bank Seaport Global Securities, whose clients held the preferreds. “I immediately saw the angst and the anger among our investors.” Parry, who’s traded in the bond market since 1986 for firms such as Bank of America and JPMorgan Chase, began calling the biggest holders of the securities that evening to plot a revolt.…

5 min
pete hecht wants investors to measure alpha instead of just talking about it

ALPHA. All hedge fund managers claim they have it. Pete Hecht knows that few of them actually do, and he’s on a crusade to keep them honest about it. Hecht is the senior investment strategist at Evanston Capital Management in Evanston, Ill., a $5.1 billion firm that farms out money to managers on behalf of pension funds, endowments, foundations, and wealthy individuals. His crusade is no easy job in an industry that’s created multimillionaires and billionaires with egos to match their outsize wealth. The mathematician in Hecht knows that more than a few just got lucky. “Capital markets are fricking tough to call,” says Hecht, 42, whose Ph.D. adviser at the University of Chicago was Nobel laureate Eugene Fama. “Some people can do it, but it’s hard to figure out who they…