Naturally, Goldman is in the process of trying to centralize all equity orders from every part of the firm, including its block trading desk and the division that services high net wealth clients, to increase its market share of all equities traded.
The latest outperformance of developed market equities has been driven by a clearer macro story.
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Ruchir Sharma, director of emerging market equities at Morgan Stanley in New York says that the Brazilan real is too strong and is stifling competition.
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David Bianco, head of U.S. Equity Strategy at Bank of America Merrill Lynch, says this is far too low for the equities market considering the condition of companies now.
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Some of the market leaders in equities like Apple (APPL) and Google (GOOG) are wobbling and that is giving him some concern.
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Fund managers expect the general market to shift back into emerging market equities at some point before the end of the year, once the fear trade subsides and investors get a better sense of where the growth is.
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There have also been offsetting outflows to emerging market equities, but neither of these have been strong enough to counter inflow strength.
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The sovereign debt crisis in Europe has provided enough systemic risk to keep money out of higher beta emerging market equities and in bonds or cash.
The bank has yet to establish a grip on the U.S. equities and derivatives market, which represents almost 50% of the global commissions revenue in equities.
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Alastair Haynes, CEO at Chi-X, told Redman that it has taken 18 percent of the European equities market since its 2005 launch and operates with about 50 people, compared to thousands for the big exchanges.
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Their emerging markets dividend fund tracks a proprietary index that starts with a universe of 1, 200 emerging market equities and chooses from those who have the highest dividend yield.
Over the course of the last two months, we have repeatedly seen the credit market be a huge tell for equities, usually in a delayed reaction type of scenario.
But equities remain the overwhelming capital market of choice for companies in need of funds.
In short, I take this move by Buffett as seriously bearish for the stock market and would be worried about the weighting of equities, especially financial intermediaries, in my portfolio.
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The speed and efficiency of the Equiduct model, specially designed for high-frequency trading of equities in the fragmented European market, is attracting institutions and bringing new players onto the market, says Fischer.
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Once a market has captured most of the trading volume in equities, it can reap economies of scale that enable it to see off even a potentially low-cost rival, and its grip on liquidity then becomes self-reinforcing.
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The inefficiencies in the art market mean that knowledgeable investors can get the sort of performance that they could hardly hope for in the relentlessly analysed equities market.
Any student of stock market history knows dividend income has accounted for a significant portion of the total return generated by equities over the past three-quarters of a century.
"There's a lot of money looking for a home and people are finally deciding the bond market is done and moving money into equities, " said Edward Simmons, managing director of Maine-based financial advisors HighTower.
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Additionally, the volume of shares traded is higher, and even the number of companies looking to tap the equities market via IPOs increases.
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One piece of data worth noting, other than the fact that equity investments are piling out of advanced Europe: U.S. equities, despite outperforming the MSCI Emerging Market index by far, are not seeing the same kind of flow.
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These theories have recently become suspect, with the correlated market declines that wreaked havoc on efficient markets, causing broad-based distortions in prices across most asset classes: the sovereign debt of Greece, Italy, Portugal, Spain and Ireland, the equities of European and domestic banks, high-yield and corporate bonds and emerging-market and domestic equities.
The rapid reduction of their exposure to equities means that a market rebound will bring only partial relief.
"We have had movement away from public equities because of volatility in the stock market, " fund chief investment officer Vicki Fuller said.
With that said, all signs point to a fantastic buying opportunity presenting itself to gain exposure to equities and allow the market to make fools of the Phase 4 investors once again.
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While that could produce the kind of downdraft in U.S. equities many market watchers have been predicting, it could also open the door for money on the sidelines to come in at lower prices.
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The Barra Risk Factor is below 40 for each company, which means that over the next month, the stocks are predicted to be less volatile than 60% of the 6, 196 equities in the broad market group.
Or that fears over protectionism, and misguided policies--including cheapening the dollar as a way to improve our trade balances--triggered the 1987 stock market crash, in which equities lost more than 20% of their value in one day?
Likewise, the bear market in equities in the developed world has wiped out trillions of dollars in valuation, resulting in rising savings rates as consumers, especially those close to a wanted retirement, try to repair their leaking balance sheets.
The lack of stock market optimism may itself be a contrarian signal to purchase equities.
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