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A VIEW FROM WITHIN

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The 1995 box office bomb Waterworld provides a good analogy to the current state of the financial system., according to Investec Asset Management strategist Michael Power. The Kevin Costner movie envisioned a world flooded after the melting of the polar ice caps. Power's article describes a world awash in excess financial liquidity. But unlike the film, we're looking at a world in which that liquidity could be withdrawn as the U.S. Federal Reserve prepares to scale back its quantitative easing program.This changing scenario is likely to see winners and losers. As Power writes, "Portfolio managers must navigate their vessels of capital -their funds - through the high seas of risk to drier land, keeping that capital waterproof by not only preserving its value but, where possible, adding to that value."
机译:根据Investec资产管理策略师Michael Power的说法,1995年的票房炸弹“水世界”很好地比喻了金融体系的当前状态。凯文·科斯特纳(Kevin Costner)的电影预想了极地冰盖融化后世界将泛滥。 Power的文章描述了充裕的金融流动性的世界。但与电影不同的是,我们正在研究一个世界,随着美联储准备缩减其量化宽松计划,流动性可能会撤出,这种变化的情况很可能会看到赢家和输家。如Power所言,“投资组合管理者必须驾驭他们的资本船只(他们的资金)穿越险峻的海洋,以干燥土地,不仅要保持资本价值,而且要尽可能增加资本价值,以保持资本防水。”

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  • 来源
    《Institutional investor》 |2013年第7期|26-26|共1页
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