The collapse of the Russian ruble has sent investors scrambling into safe havens. What will the fallout be for global markets? Bloomberg Businessweek offers a current analysis. Those who were worried about their tax breaks expiring at the end of 2014 have received a one year reprieve from Congress. Alistair Nevius covers the list of tax provisions that are awaiting the President’s signature. Looking toward 2015, divergence seems to be the buzzword. The world’s largest money management firm, Blackrock, offers advice on how to invest when there are few consolidated trends. Many of the investment lessons of 2014 will be useful as we move into the new year. Seth Masters of AllianceBernstein offers five tips on what this year portends for the coming one.
Ruble Tumbles, Touching Off Financial Crisis In Russia– The value of the ruble fell 11% Tuesday, even though the Central Bank of Russia had raised the benchmark interest rate to 17%. “Russia is in full-blown currency crisis,” said Alexander Moseley, a fund manager at Schroders. “It is difficult to see the underlying source of stress ending.” The ruble has lost half its value this year. Meanwhile, investors worldwide are jumping into safe havens. Read more…
Congress Extends Expired Tax Provisions For One year– The Senate approved legislation Tuesday that retroactively extends a number of expired tax provisions for one year, through 2014. Included in the extended provisions are the research-and-development credit, bonus depreciation and higher limits under Section 179. The bill goes to the President for his signature. Read more…
Dealing With Divergence. Blackrock’s 2015 Investment Outlook– Divergent economic growth and monetary policy underpin the 2015 investment base case for Blackrock, the world largest money management firm. They expect tightening financial conditions in the U.S. and U.K. due to a pickup in growth and improving labor markets. Lackluster growth and low inflation expectations support looser monetary policy elsewhere. Falling oil prices should support growth in most countries and hinder it in a few. Read more…
Lessons Learned in 2014– In 2014, US stocks forged ahead, international developed and emerging-market stocks lagged, bonds did better than expected, and the IRS took a bigger bite. Here are some lessons for US investors to carry forward into 2015 from Seth Masters of AllianceBernstein. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller