Exact(15)
If this portfolio shift mirrors the behaviour of all pension, insurance and mutual fund managers, it would imply an outflow from dollar assets of $1.16 trillion since 2003.
All this is highly convenient for governments, which have a lot of bonds to sell.This portfolio shift has already had profound consequences.
Typically, when EMs are faced with an episode of similar characteristics, there is a portfolio shift in favour of foreign‐exchange-denominated assets triggering maxi‐devaluations and inflation.
Mr. Jilek thinks that the previous generation, which is reaching 65 now, is ready to begin making the portfolio shift to less risky assets like bonds.
But that portfolio shift is probably over, and may well have overshot; witness Monday's fall of more than 4percentt in the S&P 500 index.
He said: Colgate would accelerate the portfolio shift to personal care, consolidate Unilever's emerging market strength, provide scale in the US and raise group earnings margins by 200 basis points.
Similar(45)
Again, governments could help accommodate these portfolio shifts by increasing their debt issuance.How much public debt is too much?
The researchers don't take a position on whether these portfolio shifts, in and of themselves, are a good or a bad idea.
The portfolio shifted entirely into short-term Treasury bills whenever oil prices rose during the previous month by more than 5percentt.
"However, if underlying vulnerabilities lead to additional portfolio shifts, further yield increases and continued higher volatility, the result could be sustained capital flow reversals and lower growth in emerging economies".
Many of the portfolio shifts that Turner made were obvious, selling shares in industries like airlines, hotels and insurance and investing in industries that could benefit like military suppliers and companies that make travel less necessary.
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