Latest news with #Economist
Khaleej Times
a day ago
- Business
- Khaleej Times
How to invest like a rich person amid market volatility
The wealthy are increasingly seeking investment opportunities that offer less correlation to the public equity markets that have long dominated their portfolios. That search has taken on new urgency following renewed market turbulence in the wake of the Trump administration's April 3 tariff announcements. While shifting towards bonds and cash equivalents provides a degree of insulation, it often comes at the expense of meaningful returns. A growing cohort of family offices and sophisticated investors are now reallocating capital towards private assets — a broad universe that includes private equity, private credit, real estate, infrastructure, and venture capital. These markets have expanded dramatically over the past decade. According to the Economist, private assets under management have surged to $24 trillion (Dh88 trillion) from $10 trillion (Dh36 trillion) a decade ago. That trajectory shows no sign of slowing. Bain & Company estimates that private market AUM will rise to between $60 trillion and $65 trillion by 2032. If realised, private assets would represent nearly one-third of global investable capital — more than twice the projected growth rate of public markets. The Rise of Private Credit Among the most striking growth areas is private credit. Once a niche segment of the market, it has grown tenfold since 2009, with AUM approaching $2 trillion by the end of 2023, according to McKinsey. As traditional banks retreat from corporate lending, the wealthy have stepped in to fill the void — drawn by the promise of attractive yields in a persistently low-rate environment. Fewer Public Listings, More Private Opportunity This structural shift is occurring alongside a broader decline in public market participation. The number of publicly listed companies globally fell from 62,959 in 2018 to 61,170 by the close of 2024. The US trend is even more pronounced: listed firms have declined from a 1996 peak of 7,300 to just 4,300 — a drop of more than 40 per cent. A combination of regulatory burden, increased merger activity, and the abundant availability of private capital has made remaining private an increasingly attractive option. Consequently, an estimated $2.6 trillion in 'dry powder' — capital raised but not yet deployed — now sits on the sidelines, ready to be invested. From the Magnificent Seven to Emerging Growth For forward-looking investors, the appeal of private markets lies not only in diversification but also in early access to the next generation of growth. Sectors such as Artificial Intelligence, climate technology, and biotechnology often reach scale long before entering the public arena. Many HNWIs are now looking beyond the overstretched valuations of publicly listed giants — the so-called 'Magnificent Seven' — to back tomorrow's innovators earlier in their life cycle. Market-Leading Private Asset Products Firms such as Blackstone and KKR have emerged as leading providers of private market access for qualified investors. Examples of a selection of key offerings include: Blackstone Private Equity Strategies Fund (BXPE): Launched in 2024, this non-listed evergreen fund offers individual investors access to Blackstone's flagship private equity platform. Sector exposures include digital infrastructure, technology, business services, financials, and aerospace. Blackstone Private Credit Fund (BCRED): Launched in 2021, it is a direct lending vehicle that targets middle-market companies in the US. BCRED provides a scalable entry point into the fast-growing private credit space. Blackstone Real Estate Income Trust (BREIT): A pioneering launch in 2017, this is a non-listed REIT that offers exposure to income-generating, institutional-grade real estate. Blackstone Mortgage Trust (BXMT) : A publicly listed real estate investment trust focused on originating senior loans secured by commercial real estate assets. Similar offerings are available from other global private asset managers, including Apollo, Carlyle, Partners Group, and Brookfield. The SLY Trade-Off: Safety, Liquidity, Yield Investors entering private markets must carefully consider what might be called the 'SLY' triangle — Safety, Liquidity, and Yield. Typically, optimising for one requires trade-offs with the others. The pursuit of high yield, for example, often entails reduced liquidity and higher risk exposure. For investors accustomed to daily liquidity and mark-to-market transparency, the realities of private markets — multi-year lockups, irregular capital calls, limited secondary market access — can be sobering. Fees also tend to be high, with incentive structures that may not always align with investor interests. Valuation presents another risk. Unlike public assets, private investments are typically valued on a quarterly basis — and often by the fund managers themselves. This creates both opacity and potential conflicts of interest that can be unsettling for those new to the asset class. Proceeding with Caution — and Conviction Given these complexities, financial advisors routinely urge the wealthy to approach private markets with caution and purpose. Allocations should reflect each investor's liquidity needs, investment horizon, and risk appetite — and remain a portion of a well-diversified portfolio. For those prepared to navigate the illiquidity, complexity, and longer time horizons, private assets offer more than just higher potential returns. They offer enhanced risk-adjusted returns, particularly in an era of volatile public markets and fading alpha. Private markets are no longer the preserve of institutional behemoths. But accessing their full potential requires the same level of discipline, due diligence, and long-term perspective.
The Guardian
2 days ago
- Business
- The Guardian
Hanoi bans The Economist's issue featuring Vietnam's leader on its cover, reports say
The latest print edition of the Economist, which features Vietnam's top leader on its cover, has been banned in the country, the latest instance of media censorship in the communist, one-party state. The magazine carried an image of the Communist party General Secretary To Lam with stars on his eyes, alongside the headline 'The man with a plan for Vietnam', with an article carrying the subheading: 'A Communist party hard man has to rescue Asia's great success story'. Vietnam has transformed over recent decades into a manufacturing powerhouse, and was one of Asia's fastest growing economies last year. However, its export-reliant economy, which is heavily dependent on sending goods to the US, faces the threat of a 46% tariff announced early this year by Donald Trump. Noting the need for Vietnam to transform its economic strategy, the Economist article stated: 'If Mr Lam fails, Vietnam will muddle on as a low-value-added production centre that missed its moment', adding that reforms could, on the other hand, 'propel 100m Vietnamese into the developed world, creating another Asian growth engine'. Reports by both Reuters and Bloomberg quoted unnamed distributors who said they could not obtain copies of the magazine or that it had been banned. An unnamed executive at distributor Ngay Moi told Reuters they had been ordered to 'tear off' the cover and article about Lam, adding: 'Later, we were ordered not to sell it at all.' An employee at a second distributor, Global Book Corporation, also told Reuters Vietnam's ministry in charge of public information had banned the edition. Vietnam's ministry of foreign affairs and the Economist did not immediately respond to a request for comment. Earlier this month, Vietnamese authorities ordered telecom providers to block the messaging app Telegram, accusing it of failing to cooperate with efforts to crack down on crime. An internal document reported by Reuters said that many Telegram groups 'with tens of thousands of participants were created by opposition and reactionary subjects spreading anti-government documents'. Vietnam has little tolerance for dissent and maintains a tight control on the media, with press freedom group Reporters sans Frontières ranking it as among the worst in the world for media freedoms - at 173 place out of an index of 180 countries. The group describes Vietnam as 'one of the world's biggest prisons for journalists'. Aleksandra Bielakowska, Advocacy Officer for RSF said the decision to ban distribution of the Economist reflected the continued repression of press freedom in the country. 'It is clear that the Vietnamese authorities consider a free press a challenge to its one-party rule, and will do anything in its power to silence independent voices,' Bielakowska said, citing the case of journalist Pham Doan Trang, who has been detained for nearly five years by the regime. 'While Vietnamese authorities seek rapprochement with democracies to boost its economy, the international community as a whole must seize this opportunity to put human rights and freedom of the press on the frontline of its negotiations,' she added.
Express Tribune
3 days ago
- Business
- Express Tribune
Senator Mushahid Hussain Sayed chairs Global Parties Dialogue in Beijing
Listen to article Chinese technological advancement has overtaken the West in key areas, including defence, artificial intelligence and green innovation, according to remarks made by Senator Mushahid Hussain Sayed at a high-level global dialogue in Beijing. Speaking at the opening of the Global Political Parties Dialogue on "Asia in a Changing World", Senator Mushahid said China had become a 'scientific superpower' and was reshaping global dynamics not through conquest, but by peaceful economic development. 'China is surpassing the West in key sectors, from J10C fighter jets and Deep Seek AI to electric vehicles,' said Mushahid, citing a recent Economist cover story. He framed the trend as part of the broader 'Rise of the East', with Asia emerging as the new global centre of gravity. READ: China assures of $3.7b refinancing next month Chaired by Senator Mushahid in his role as Co-Chairman of the International Conference of Asian Political Parties (ICAPP), the Dialogue brought together representatives from 250 political parties across 29 countries. The conference was hosted by the International Department of the Communist Party of China (IDCPC) in Beijing. In a striking geopolitical assertion, Mushahid also described China as 'part of South Asia' and 'a source of stability in the region,' noting its peaceful relations with nearly all neighbours despite having borders with 14 countries. He stressed that the border dispute with India should not define bilateral relations and must be resolved peacefully. The panel also featured senior political figures including IDCPC Minister Liu Jianchao, former Thai Speaker Bokin Balakula, and former Mongolian Foreign Minister Damdin Tsogtbaatar. READ MORE: PCI report details 16 hours that shook South Asia Liu echoed Mushahid's remarks, affirming that China does not aim to export its political model, but offers its poverty alleviation experience as a blueprint for developing nations. 'China's rise has come through reforms and development,' Liu said, adding that China remains committed to cooperation and peaceful coexistence within South Asia. Pakistan's presence at the conference was notable, with former Senate Chairman Nayyar Hussain Bokhari, Senator Anusha Rehman, Ambassador to China Khalil Hashmi, and several business and think tank representatives in attendance. On the sidelines of the event, Liu held a separate meeting with Senator Mushahid, discussing high-level exchanges between the two countries, including his own visit to Islamabad in June 2024 and the recent trip by Pakistani Deputy Prime Minister Ishaq Dar to Beijing. The conference also received congratulatory messages from the Prime Ministers of Pakistan and Malaysia, underlining the event's significance in shaping future regional cooperation.
The Standard
4 days ago
- Business
- The Standard
Fed's Williams calls for strong response if inflation deviates from target
New York Federal Reserve President John Williams speaks at an event in New York, U.S., November 6, 2019. REUTERS
Miami Herald
4 days ago
- Health
- Miami Herald
Did Democrats try to conceal Biden's health status? What Americans said in poll
Most Americans think there was a concerted effort to hide details about former President Joe Biden's health during the course of his presidency, according to new polling. In the latest Economist/YouGov poll, 57% of respondents said they believe 'Democrats actively tried to conceal information' from the public that pertained to Biden's health. Just 22% disagreed, and 21% said they were not sure. While majorities of Republicans and independents — 86% and 57%, respectively — said they believed a cover-up took place, only 28% of Democrats agreed. The poll — conducted May 23-26 — also revealed that most Americans believe Biden was severely limited by his health and that he was not transparent about his health status while in the White House. It comes a week after the release of 'Original Sin,' a book by journalists Jake Tapper and Alex Thompson, which provides evidence of Biden's 'serious decline' and 'desperate efforts to hide the extent of that deterioration.' Among the allegations included are that Biden forgot the names of his top aides, was shielded from Cabinet officers and that his staff discussed having him use a wheelchair. Reports of Biden's decline had previously been reported, particularly by conservative media — a fact Tapper acknowledged in a recent interview with Megyn Kelly. 'I feel tremendous humility about my coverage,' the CNN anchor said. The poll also comes after Biden, 82, announced on May 18 that he was diagnosed with an aggressive form of prostate cancer that has metastasized to his bones. Following the announcement, President Donald Trump proposed, without evidence, that the former president had hid his cancer diagnosis. Additional findings In the poll — which sampled 1,660 U.S. adults — 58% of respondents said Biden's health and age 'severely limited his ability to do the job.' Meanwhile, 36% said it had little or no effect on his ability to carry out his duties. Perhaps unsurprisingly, there was a large partisan divide on this question. Most Republicans and independents — 83% and 58%, respectively — said Biden's age and health were greatly limiting, while 31% of Democrats said the same. An even greater share of respondents said Biden's advanced age and health would have been a problem if was president now. Seventy-six percent said Biden's age and health would severely limit his capacity to do his job if he had been reelected to serve another term, while 17% said they would have little or no effect. Here, there was agreement across the political spectrum. Majorities of Republicans (87%), independents (77%) and Democrats (63%) said Biden would have been greatly impeded. By contrast, fewer Americans think Trump's age and health affect his performance, according to the poll, which has a margin of error of 3.2 percentage points. Less than one-third of respondents, 31%, said Trump, who is 78 years old, is severely limited by his age and health, while 59% said they have little or no effect. A majority of respondents, 61%, also said that, as president, Biden was not very or not at all transparent about his physical health. Thirty-one percent said he was very or somewhat transparent. In comparison, less than half of respondents, 45%, said Trump has been not very or not at all transparent when it comes to his health. A slightly smaller share, 42%, said he has been very or somewhat transparent. Further, the survey indicated that most Americans want transparency to be mandated from their leadership. Sixty-two percent said the president 'should be required to publicly release all medical information that might affect their ability to serve…' Meanwhile, 28% said the president, like other citizens, should be allowed 'to keep their medical records private.'
