"Our overriding conviction is that we are nearer the beginning of this process than the end," says Crispen Odey, who has raised the cash level at his $11.7B Odey Opus growth fund to 29% of AUM. Valuations globally need to come in 30-40% before they offer a compelling bargain, he adds.
Not just another gloom and doom talking head, Odey is typically a bullish type, and his Opus fund is up 270% since its 2001 launch, tripling the performance of its benchmark.
China's devaluation, says Odey, hints at an era of financial crisis in emerging markets, complete with currency wars, tariffs, and the formation of trading blocs. China's economy, he says, will be the new U.S. housing crash.
Due to a slowdown in emerging markets and softer output in the U.S., the World Bank downgraded its outlook for global economic growth this year, lowering its forecast by 0.2% to 2.8%. The bank expects growth of 3.3% in 2016.
With regards to the U.S., the World Bank decreased its 2015 prospects by 0.5% to 2.7%, saying a brutal winter sapped output in Q1 despite the economy now gathering steam.
The RevenueShares Global Growth Fund (NYSEARCA:RGRO) is comprised of the top 5 developed and top 5 emerging countries based on their percentage growth of their year over year GDP from the prior 2 quarters.
According the the fund website, "the top 10 revenue producing companies are selected for each country and are revenue weighted relative to each other and prorated into their country's weighting."
The SPDR Barclays 0-5 Year TIPS ETF (SIPE) launches today and will offer investors short term exposure to the TIPS market; this space features a lot of competition.
The iShares Enhanced International Large Cap ETF (IEIL) and Enhanced International Small Cap ETF (IEIS) began their active strategy this morning and offer expense ratios of 0.35% and 0.49% respectively.
The PowerShares International BuyBack Achievers Portfolio (IPKW), like IEIL and IEIS, is based on a previously launched domestic strategy; the PowerShares BuyBack Achievers Portfolio (PKW).