{"id":22820,"date":"2008-01-31T08:34:00","date_gmt":"2008-01-31T08:34:00","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=547"},"modified":"2008-01-31T08:34:00","modified_gmt":"2008-01-31T08:34:00","slug":"whos-who-in-the-city","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/whos-who-in-the-city\/","title":{"rendered":"Who\u2019s who in the City?"},"content":{"rendered":"
Bloomberg TV<\/a>, Wednesday 23 January 2008, Gonzalo Rengifo, Managing Director of Pictet & Cie. in Spain, Portugal and Latin America:<\/div>\n
\n

\u00abAt the moment, investors in the stock market should be cautious, but that does not mean they should stop being active, as there are numerous very attractive investment opportunities they should take advantage of.\u00bb.<\/p><\/blockquote>\n

A. Redondo and J. Zuloaga, <\/a>Expansion<\/a> Sunday 27 January 2008, A guide to weathering the stock market storm<\/a>:<\/p>\n

\u00abAfter several years of enjoying a Mediterranean climate, global stock markets are currently facing a veritable storm. The clearest example of this shift is reflected in the last trading week, when the subprime crisis and fears of a US recession triggered the biggest rises and falls in the Ibex\u2019s history within just three days. Many investors have been shipwrecked by the new storms on the trading floor. Probably because they were unaware of the lifeline offered by derivative products.\u00bb (\u2026) \u00abBut, as well as sheltering from the storm, investors can also capitalise on it. To this end, one option is to opt for trading in futures.\u00bb (\u2026) \u00abIn addition to these products, financial institutions are turning to new tools such as contracts for difference (CFDs), which have been hugely successful in the UK, or certificates, which have proved a hit in markets such as Germany and Italy.\u00bb (\u2026) \u00abMeanwhile, certificates also broaden the range of possibilities, although their tax treatment makes them difficult to market. However, some institutions, such as UBS, Deutsche Bank and, to a lesser extent, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale, have decided to take their first steps into a product that is listed on the stock exchange and is structured around one or more indices, a basket of shares or a sector, allowing investors to bet on falling prices, with the aim of multiplying gains or reducing losses. They are ideal for non-directional markets, says Miguel Mu\u00f1oz of X-Markets, Deutsche Bank\u2019s certificates division.\u00bb <\/p><\/blockquote>\n

\"\"<\/a>Bitchbag<\/a>, Saturday 26 January 2008, comment on our article Coitus interruptus<\/a>:<\/p>\n

\u00abWe\u2019ll see how this all turns out, because at the moment both sides are being torn apart \u2013 the bulls and the bears at the same time. The only ones coming out unscathed for now are those watching the bullfight from the sidelines.\u00bb<\/p><\/blockquote>\n

Cretan<\/a>, Wednesday 23 January 2008, in his article Trichet is standing firm, and the market is paying the price<\/a>:<\/p>\n

\u00abThe market remains so turbulent that the best thing to do is to stay on the sidelines and hope that negative news doesn\u2019t keep piling up. I won\u2019t tire (for the time being) of continuing to recommend the same thing: a great deal of caution, and the further away from the markets, the better.\u00bb<\/p><\/blockquote>\n

JMDV<\/a>, Thursday 24 January 2008, in his article Jauja again<\/a>:<\/p>\n

\u00abWhat I\u2019m trying to do is call for caution and remind you that all the doubts that existed on Monday (for those who actually believed them) still hold true today, Thursday. Nothing has changed except Mr Market\u2019s mood. Let us therefore take this opportunity to fill our portfolios with good companies at good prices\u2026\u00bb (\u2026) \u00abRemember that the aim of any investor (whether technical, fundamental, long-term or short-term) is to grow their wealth over the years. If we fill our portfolios with high-risk shares, blinded by buying frenzy, we run the risk of never achieving our goals.\u00bb<\/p><\/blockquote>\n

In this very post by JMDV, we find comments \u2013 a gem like this one from The Omega Man (one of my favourite commenters; sorry, but I don\u2019t know where to link to you):

\u00abPasta and fundamentalisms:\u2019<\/span>
Value investors (myself included, at least) aren\u2019t value investors for aesthetic, philosophical or religious reasons. We are value investors because we want to make as much money as possible, and we have at least 5\u201310 years to reap the rewards. And if you spend enough time reading about the <\/span>When looking at this topic \u2013 which investors have achieved the highest annual returns, and so on \u2013 you quickly realise that the most effective way to do so is through value investing.<\/span> The fact is, if you\u2019re not in a hurry, making money on the stock market is incredibly simple:<\/span> 1. Calculate the intrinsic value, as conservatively as possible, of a number of companies (and JM explains this to us every now and then) <\/span>(how to do it).<\/span> 2. Buy, when they come within reach, at prices well below that intrinsic value (50-40%).<\/span> 3. Sell when the share price approaches its intrinsic value.<\/span> And that\u2019s that. There\u2019s nothing else to do. Are prices falling? Well, buy more if you\u2019ve got the money, and if not, just be patient and stay calm. Can\u2019t find any? <\/span>Companies to buy? Well, just keep your cash reserves up and carry on looking.<\/span> Anything other than those three points above is just noise, and the mind playing tricks on us by looking for patterns in <\/span>\u00bbthe turmoil on the stock market.\"<\/p>\n

<\/span>\"\"<\/a>We could give many other examples, but we think these will be enough to give you food for thought:<\/p>\n

In the first instalment, we have comments from Gonzalo Rengifo (Managing Director, Pictet Spain, Portugal and Latin America), and the article in *Expansi\u00f3n* features contributions from Miguel Mu\u00f1oz (Deutsche Bank\u2019s certificates division), Miriam P\u00e9rez-Camino (Head of Listed Products at BNP) and Francisco L\u00f3pez (derivatives expert at Gaesco Bolsa), amongst others. They are nothing more than Financos are on the hunt for Invers\u00f3patas.<\/a> (We warned about this back in June 2007, but they\u2019re still as ravenous as ever)<\/p>\n

\"\"<\/a>In addition, we have included Putabolsa, Kretan, JMDV and The Omega Man in a second group. I think we would all agree that this selection has a great deal of quality<\/span> (I should point out that, technically speaking, I consider these bloggers to be at least as knowledgeable as the leading ones) whilst diversity<\/span>. It is clear that within this second group we might find radically different views on investing in the markets; however, given the current situation, their views converge on many points, diverging significantly from the talking points put forward in commentaries by Bloomberg and Expansi\u00f3n.<\/p>\n

What differences are there between these first two examples and the rest of the bloggers and authors whom we find much more relatable and admirable? Independence<\/span>. Indeed, none of our dear colleagues and neighbours has any ulterior motive beyond offering honest advice out of a purely educational or philanthropic desire. Whereas all those quoted in Bloomberg and Expansi\u00f3n spout a line on which the revenues of the companies paying their salaries depend, and which will potentially enable them, over time, to climb the corporate ladder. That is all there is to it. It is not a question of some being clever and others foolish (there may be a few, but I doubt they are in the latter group), nor is it that their view of the markets and risk is incomplete or distorted. I repeat, the essential difference is Independence<\/span>.<\/p>\n

\"\"<\/a>If we extend this phenomenon to other areas of wealth management \u2013 and not just to the markets \u2013 we will gain a better understanding of what counselling entails. If we also apply the quintessence of the networking<\/span> With counselling, we will be very close to what a multi-family office is. The \"\"<\/a>The cost of this independence will be more than offset by the savings on fees and the avoidance of unnecessary risks, not to mention the potential losses from unsuccessful investments.<\/p>\n

My respect and admiration for the second group mentioned, and my deepest contempt for the first. For at times such as these, I hold them particularly responsible for the catastrophic damage caused \u2013 and likely to be caused \u2013 to the assets of investors who are unaware of the grave dangers posed by the \u00ablifelines\u00bb offered to them by their derivative products. Proposing investments to clients who lack the necessary knowledge to understand or accept the risks involved is not only unethical<\/span>. Even though their clients\u2019 operating accounts meet the targets set, and unfortunately their superiors reward them for this, even in times of prosperity, it is negligible<\/span>.<\/p>\n

How much longer will the average investor continue to place blind trust in expert analysts on the payroll of companies selling financial products? It\u2019s not that difficult to work out Who\u2019s Who in the City<\/span> if we look at the economic independence of their slogans.<\/div>","protected":false},"excerpt":{"rendered":"

Bloomberg TV, mi\u00e9rcoles 23 enero 2008, Gonzalo Rengifo dtor. gral. de Pictet & Cie. en Espa\u00f1a, Portugal y Am\u00e9rica Latina: \u00abEn estos momentos el inversor en bolsa debe ser cauto pero no por ello dejar de ser activo, ya que hay numerosos tipos de inversi\u00f3n muy interesantes que debe aprovechar\u00bb. A. Redondo y J. Zuloaga, […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-22820","post","type-post","status-publish","format-standard","hentry","category-sin-categorizar"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/22820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=22820"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/22820\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=22820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=22820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=22820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}