This and That: Eurobonds, investors behaving badly and more …
Will Germany say ja to Euro bonds?
Despite Germany’s staunch opposition to issuing bonds jointly with other European countries, this article argues that Germany will eventually cave and pay up because the costs of a Euro breakup will be disastrous for it.
Investors behaving badly
With all the volatility in the markets, it is hardly surprising that investors have responded by stampeding out of stock markets. According to the Investment Company Institute, which tracks mutual fund flows in the US, investors have been net sellers of equity mutual funds in 12 of the past 12 months.
Dividend Investors are worry warts too
If you hear dividend investors talk, you’d think that all there is to investing is to buy some dividend payers, sit back and collect the dividends and not worry what the markets are doing. It turns out many dividend investors worry about the market direction just like other investors. This Globe and Mail column quotes dividend investor Tom Connolly worrying that “stocks may be in a long-term bear market” and “the lows of the 2009 bear market could be retested”.
Adding Commodities to a Portfolio
This article points out that adding commodities to a portfolio can reduce volatility without impacting returns.
Escher in LEGO blocks
And now for something completely different… It is amazing to see M. C. Escher’s lithograph print Ascending and Descending rendered with LEGO blocks here.