Do You Agree With Merrill Lynch's Memo?
When a memo circulates around this office, it usually circulates the media too. It's become some kind of a media tool now, perhaps even a marketing scheme. Regardless, Merrill Lynch's "leaked" memo (article from CNBC) by its wealth management team suggests :
...investors should put money into companies, not governments, since the former are more reliable, transparent and growth-orientated. It calls for a rethink of the traditional binary distinction between “developed” and “emerging markets” countries; the latter includes some countries (such as Ghana and Indonesia) which are likely to flourish for structural reasons, but others which are not.
They also recommend ETFs and globally diversified treasuries:
...to guard against the inflation and sky-high taxes that it fears will be unleashed by desperate governments. And the US broker says it is time to abandon the idea that treasuries are a special asset class, let alone “risk-free”; this no longer makes sense in a G-zero world. “Unlike old US-centric portfolios that called for nearly half of bond allocations being dedicated to US treasuries and municipals, [our] current models consider all bonds “global”,” Merrill Lynch says. Hence that interest in Australian sovereign debt or Singaporean bank bonds.
This memo and advice isn't all too surprising but I would agree with most of what was said.
Sound advice? Anything you would disagree with Merrill's memo?
You mean Bank of America...
He means Merrill. BofA folded the banking and securities operations of ML into BofA-ML, but kept the Asset Management separate.
Touche
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