Sunday, October 21, 2012

Japan Exports fall....

Japan’s exports fell the most since the aftermath of last year’s earthquake as a global slowdown, the yen’s strength and a dispute with China increase the odds of a contraction in the world’s third-largest economy.

Living In An Ivory Tower

“You can’t live in an ivory tower in New York and think the rest of the world can burn and it won’t affect you,” says Nwanze, 66. “The world has become a global village. When you look back at what happened during the food-price crisis in 2007 and 2008, it was a wake-up call. It resulted in food riots in 40 cities across the world. It brought down governments. When people are hungry and angry in rural areas, it results in political instability.”

Tuesday, October 16, 2012

So How Many Casualties Did Greenspan Leave behind?

The true measure of a career is to be able to be content, even proud, that you succeeded through your own endeavors without leaving a trail of casualties in your wake. --
Alan Greenspan

Monday, October 8, 2012

Leadership or Luck?

Mr. Chávez has trumpeted his programs to help the poor, and has pointed to a sharp reduction in the number of people living in poverty. But he has governed during a phenomenal rise in oil prices, which have soared from $10 in 1998, the year before he took office, to more than $100 in recent years and the high $80s now, pouring huge amounts of revenue into Venezuela. Mr. Capriles, who has served as a legislator, mayor and governor, campaigned almost nonstop, seeking to contrast his energetic style with the reduced schedule of Mr. Chávez, who received a diagnosis of cancer in 2011.

Chavez is doing a great job?

Venezuela is mired in problems, including out-of-control violent crime, crumbling roads and bridges, and power blackouts that regularly plague much of the country outside the capital. Oil production, the country's mainstay, has plateaued in recent years, and other exports have not picked up the slack. The overall economy grew this year, largely because of a huge pre-election boost in government spending, but clouds loom. A devaluation of the Venezuelan currency, the bolívar, is widely seen as inevitable, and inflation remains stubbornly high.

Friday, October 5, 2012

Annual Return

Annual return is the de facto method for comparing the performance of investments with liquidity, which includes stocks, bonds, funds, commodities and some types of derivatives. Different asset classes are considered to have different strata of annual returns.

What is the common hurdle rate?

Most companies use a 12% hurdle rate, which is based on the fact that the S&P 500 typically yields returns somewhere between 8% and 11% (annualized). Companies operating in industries with more volatile markets might use a slightly higher rate in order to offset risk and attract investors.

Wednesday, October 3, 2012

The Hurdle Rate


The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, the riskier the project, the higher the hurdle rate.

In the hedge fund world, hurdle rate refers to the rate of return that the fund manager must beat before collecting incentive fees.