Investing in the New Leisure & Entertainment Sector

Technology is changing the nature of entertainment and leisure activities, creating new opportunities for investors. The leisure and entertainment sector represents a large chunk of the economy and has continued to grow. The Dow Jones Travel and Leisure Index has grown at twice the pace of the S&P 500 index in the past two decades. Total leisure spending is at more than $1 trillion globally if you keep in mind film, gaming, restaurants, fitness and social media. This space is set to grow even further for these reasons below: Automation is allowing people to work less and spend more time to “play more”. Americans may feel busier than ever, but the time spent working has actually declined in a

Banks: A Tale of Necessary Transformation

Investors have maintained a rather negative view of the banking sector; banks hold equity valuations now above book value, but only slightly. Prior to the recession, the price-to-book ratio of banks in developed countries was circling around 2, but since then banks have had average price-to-book ratios of less than one. Additionally, banks in developing countries are under performing due to the issues with nonperforming loans, with over 9% of loans considered nonperforming in countries such as India. Turkey’s issues with the Lira are creating additional concerns about the default rise climbing due to depreciation. Meanwhile, investors have seen a trend in the performance of banks: sharp cuts

Investors Shouldn’t Shrug Off These Top Three Risks

There has been a lot going on in markets this year. Q2 corporate earnings were up 24% year-over-year on average and stock buybacks were up over 50%. Economic growth as a measure of GDP was up 4.1%, the highest in recent years. Despite these positive trends, investors should watch out for some potential headwind. Trade war, especially in China could escalate even further. We have already started seeing total U.S. exports slowing down likely due to a stronger U.S. dollar and unease with recent trade rhetoric. The dollar value of goods affected by tariffs could rise to levels that could eventually prove a recession is underway. Economic growth is set to slow down as Q3 is unlikely to keep pace

Global Market Impact on Dollar Volatility

Investors have been surprised as U.S. stocks have outperformed in 2018 relative to the rest of the world. The S&P 500 benchmark in the U.S. market is up 8% to date, while the global equity index that excludes the U.S. is down 5%. Speculators say there could be many reasons for this divergence. The United Kingdom, Italy and Brazil have had domestic politics which hurt returns in countries involved. During this time, the U.S. dollar strengthened relative to the basket of currencies and trade tensions hit China and emerging markets. Investors have seen U.S. markets skyrocketing due to tax cuts, fiscal stimulus and investor perception that the U.S. dollar could be a better safe haven asset again

PE Investment: 2017 and Forward

Investors saw very positive results in private markets for FY 2017; the year marked a record year for fundraising in private markets, with over $750 billion globally raised. PE and private debt grew by 11 percent and 10 percent respectively. Most growth derived from funds with AUM of over $5 billion. Notably, ignoring megafunds, the market activity from all other funds decreased. As numbers are finalizing for the year of 2018, investors see funds raised thus far down about 40%, while aggregate capital raised within PE is down about 30%. Overall operating metrics for the industry appear healthy, with dry powder to deal volume at a healthy ratio and stable over time. Interestingly enough, pen

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